Question

Month Income (hourly wage) Quantity Demanded March $26 37 April $23 39 May $28 32 June $29 41 July $29 42 What is income elasticity of demand for July and is it an inferior or normal good? Group of answer choices Infinity, and it is a normal good Infinity, and it is a normal good -Infinity, and it is a normal good Infinity, and it is a normal good 

          Month Income (hourly wage) Quantity Demanded
March $26 37
April $23 39
May $28 32
June $29 41
July $29 42
What is income elasticity of demand for July and is it an inferior or normal good?
Group of answer choices
Infinity, and it is a normal good
Infinity, and it is a normal good
-Infinity, and it is a normal good
Infinity, and it is a normal good
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Added by Rafael Y.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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Month Income (hourly wage) Quantity Demanded March $26 37 April $23 39 May $28 32 June $29 41 July $29 42 What is income elasticity of demand for July and is it an inferior or normal good? Group of answer choices Infinity, and it is a normal good Infinity, and it is a normal good -Infinity, and it is a normal good Infinity, and it is a normal good
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Transcript

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00:01 This question is walking us through finding the income elasticity of demand for bread consumption, given the information that the average income was $25 ,000 and it's now $38 ,000, and that the bread quantity consumed was 30 loaves and now it's 22 loaves.
00:14 So part a calculating this elasticity of bread consumption, we're going to be using the formulas you see in blue and green.
00:21 So starting with plugging in our percent change in quantity demanded, that's equal to a negative 30 .77 percent...
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