Question
When Kaya's income increased from $2,000 to $2,500, the quantity of Hass Avocados purchased increased from 300 to 450 per month. Using the mid-point for-
When Kaya's income increased from $2,000 to $2,500, the quantity of Hass Avocados purchased increased from 300 to 450 per month. Using the mid-point for- mula, calculate Kaya's income elasticity of demand for Hass Avocados. Are Hass Avo- cados normal/inferior to Kaya, and why? [Show all your calculations in the space below]
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Macroeconomics
Authors: Stephen d. Williamson
5th Canadian edition
133847144, 9780134604794 , 978-0133847147
