Question 1

Suppose your previous income was $Y and your demand for baked chicken under this income was given by Q=36-25X. Due to a recent promotion, your salary is now $7625, and your demand for baked chicken has changed to Q=20+12X. Select a value for Y between [3942-7209] and a value for X between [0.1-0.9].

i)Calculate your Income Elasticity of Demand for baked chicken.

ii) Based on your calculations above, what type of good can you classify baked Chicken as