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14 February, 08:19

A 10% rise consumer income results in a 4% decrease in the quantity demanded for pasta. the income elasticity of demand for pasta is

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  1. 14 February, 08:28
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    The income elasticity of demand for pasta is - 0.4 based on the data from the question above. The answer to this problem can be solved using the elasticity formula which stated as ED = Q percent change / I percentage change where ED is the elasticity of demand, Q is the quantity of the product, and I is the consumer's income. (Calculation: - 4%/10%=-0.4)
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