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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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