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Question 3 [19] The average monthly income of households in a certain town increases from R2 500 to R3 000. As a result, the quantity
Question 3 [19] The average monthly income of households in a certain town increases from R2 500 to R3 000. As a result, the quantity demanded of white bread rolls increases from 1 000 to 1 300 units per day, the quantity demanded of whole-grain bread rolls decreases from 800 to 700 units per day and the quantity demanded of Mcdonald's hamburgers increases from 400 to 600 hamburgers per day. 3.1 Use the arc elasticity formula to calculate the income elasticity of demand for white bread rolls, whole-grain bread rolls and Mcdonald's hamburgers. 3.2 Classify each of these three products as normal or inferior. Explain your answer in each case. 3.3 Classify each of these three products as a necessity or a luxury. Explain your answer in each case
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