Question
The price of a combo meal at Lion Restaurant is $10. When Axel had an old income of $8,000 his old demand for combo meals
The price of a combo meal at Lion Restaurant is $10.
When Axel had an old income of $8,000 his old demand for combo meals was Q = 400 - 4P.
When Axel had a new income of $16,000 his new demand for combo meals was Q = 580 - 4P.
What is Axel's income elasticity for combo meals at Lion Restaurant? Round your answer to 2 decimal places if necessary.
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
