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Table 56 Shows the Change in the Quantity Demanded for Good

question 110

Multiple Choice

Table 5.6 shows the change in the quantity demanded for Good A and Good B as a result of a change in income. Use the information in the table below to calculate the value of the income elasticity of demand for Good A.​ ​
Table 5.6


Quantity
Income
Good A

100
$1,000
120

$2,000
Good B
200
$20
140
$35


Definitions:

Interval of Random Numbers

The range between the smallest and largest numbers in a set that has been chosen randomly.

Random Numbers

Sequences of numbers generated in such a way that each number has an equal chance of being any value within the defined range, used in simulations and probabilistic calculations.

Expected Demand

An estimate of the quantity of a product or service that consumers will purchase in the future, often used for planning and inventory management.

Demand Probability

The likelihood that a specific level of demand will occur within a certain period.

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