Only Question is D-ii

(d) Using the income elasticity of demand data in the table calculate the percentage change in quantity demanded for housing if household incomes rise by 4%; Paper 2 Take Home - 10 pts . . ... . The table below shows data for price elasticity of demand and income elasticity of demand for seven product groups in Argentina in 2008. Food and Clothing Housing House Health Transport Recreation Beverages and furnishing care footwear Price elasticity of -0.49 -0.71 -0.79 -0.77 -0.96 -0.84 -1.03 demand calculate the percentage change in household incomes that can lead to a 5% rise in quantity demanded of recreation. Income N elasticity of 0.67 0.96 1.07 1.05 1.31 1.16 1.41 demand . . . Percentage of income spent by the average 22% 5% 18% 6% 9% 16% 9% household on each product X group [Source: adapted from http://www.ers.usda.gov/publications, 23 July 2011. U. S. Department of Agriculture] There are concerns about rising food prices and their impact on households. Economists have and for goods in other