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Tran consumes two main foods--pizza and chicken. Recently he got a promotion and his income rose from $300 per week to $340 per week. As
Tran consumes two main foods--pizza and chicken. Recently he got a promotion and his income rose from $300 per week to $340 per week. As a result, his demand for pizza fell from 5 per week to 3 per week. His demand for chicken increased from 6 packages per week to 8.
(a) Calculate Tran's income elasticity for pizza(3 marks)
(b) Calculate Tran's income elasticity for chicken(3 marks)
(c) What type of good does Tran consider chicken? How about pizza? Please explain(3 marks)
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