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Please teach me how to answer the following questions: Q2 Income elasticity of demand Now assume that economy enters in recession because of an unexpected
Please teach me how to answer the following questions:
Q2 Income elasticity of demand Now assume that economy enters in recession because of an unexpected pandemic
(Hint: what kind of elasticity would you use to address this change).
1. How would this affect your earlier decision? 2. Will this impact reinforce or counteract your decision to change prices or not? 3. Which impact would you expect to prevail? Income or prices?
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