Question
(a) When John's income increases, his demand curve for good A shifts to the left. When Ellen's income falls, her demand curve for good A
(a) When John's income increases, his demand curve for good A shifts to the left. When Ellen's income falls, her demand curve for good A shifts to the left.
(i) What can you conclude about the income elasticity for good A for each person? Explain... ( 3 marks )
(ii) Why is the concept of Income Elasticity important for businesses? Explain...(3 marks
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Environmental Economics and Management Theory, Policy and Applications
Authors: Scott J. Callan, Janet M. Thomas
6th edition
1111826673, 1111826676, 1439080634, 1439080631, 9781285528540 , 978-1111826673
