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Income of a person is Rs.8000 and he uses 60 units of a commodity. 1.Calculate income elasticity of demand when the income increased by 30%

Income of a person is Rs.8000 and he uses 60 units of a commodity.

1.Calculate income elasticity of demand when the income increased by 30% and consumption of the good is decline by 50%. (1 Mark)

Also calculate

2.New income (1 Mark)

3.New consumption (1 Mark)

4.Nature of good (1 Mark)

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