The figure below shows the demand curves for Good X at different levels of consumer income, M. Use the midpoint method to calculate the income elasticity of demand for Good X when income increases from $25,000 to $30,000.Show your work. (You calculate the income elasticity of demand the same way the price elasticity of demand is calculated except that in stead of P your are using income). Is Good X a normal or an inferior good?

Explain.

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