I notice the answers people provided they divided the income by demand. Isn't it suppose to be the other way around ? To get more in depth: It should be 18/10 because %change in demand/% change in incomeOne of the answers-a) price elasticity of demandQuantity demanded = 8 - (2x10) + (0.10 x 100) + 20 Quantity Demanded = 18Price elasticity of demand = 10 18 = 0.555Price elasticty of demand = 0.56b) income elasticity of demand Income = 100Therefore income elasticity of demand = 100 18Income elasticity of demand = 5.56

(using the point form), cross-price elasticity with good x, and income elasticity. Q = 8 - 2P + 0.101 + P. Q is quantity demanded, P is the product price, Px is the price of a related good, and I is income. Assume that = $10, I = 100, and P. = 20