In 1995, the price of meatballs was 24 kronor (P = 24). Using this price, plot income

(vertical axis) against quantity (horizontal axis) in Figure D. This relationship is

Wallender's 1995 Engel curve for meatballs. It shows how his purchases of this

product in 1995 varied with his monthly income, given price was constant at 24.

Engel curves will be formally derived from the theory of the consumer in the next

unit.

Graph:

Question:

Compute Wallender's income elasticity of demand at any point along this relationship.