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Denote the consumption of food by x and the consumption of all other goods by y. The demand for food as a function of prices
Denote the consumption of food by x and the consumption of all other goods by y. The demand for food as a function of prices and income is given by:
Qx(Px,Py,I)=(3I)/(4Px). What is the price elasticity for the consumption of food when income I=100, PX=3, and PY=5?
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