Question
Suppose that the market demand curve for wheat is given by , Q = 100 - 2PW + PB + 2Y where, Q is quantity
Suppose that the market demand curve for wheat is given by , Q = 100 - 2PW + PB + 2Y
where,
Q is quantity of wheat demanded
PW is the price of wheat
PB is the price of barley
Y is the income of consumers
Suppose the current price of wheat is $2, the current price of barley is $3 and income is $1000. Calculate the income elasticity of demand for wheat.
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International Business
Authors: Alan M. Rugman, Simon Collinson
6th edition
273760971, 978-0273760979
