Question
The price of a fish dinner is $4. When Harry's old income was $1,500 per month, his old monthly demand for fish dinners was Q
The price of a fish dinner is $4. When Harry's old income was $1,500 per month, his old monthly demand for fish dinners was Q = 18 - 0.5P. When Harry got a pay raise and began to earn a new income of $2,000 per month, his demand shifted to a new function of Q = 21 - 0.5P. Given this information, find Harry's income elasticity (EI) for fish dinners. Harry's income elasticity is for fish dinner is _____________.
Consider your answer to the previous question. Based on the income elasticity you found, we can conclude that for Harry, fish dinner is considered _________________.
Group of answer choices
a normal good, and a luxury
a normal good, and a necessity
an inferior good
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Statistics The Art And Science Of Learning From Data
Authors: Alan Agresti, Christine A. Franklin
3rd Edition
9780321755940
