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Suppose that household incomes in Sherbrooke changed from $96,200 to $111,800, and assuming no change in price, the quantity of a Kraft macaroni and cheesesold
Suppose that household incomes in Sherbrooke changed from $96,200 to $111,800, and assuming no change in price, the quantity of a Kraft macaroni and cheesesold changed from 81 to 99 cases per week.
a) What is the value of the income elasticity of demand for a Kraft macaroni and cheese?Round your answer to 3 decimal places.When applicable, remember to enter a minus () sign to indicate negative values. (Hint: Income plays a role here)
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b) What does this suggest about this product?
..........IneriorLuxuryNecessity
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