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When the consumer's real income is P40,000, the quantity demanded economy seats in the flight are 400 seats. When the consumer's real income is increased
When the consumer's real income is P40,000, the quantity demanded economy seats in the flight are 400 seats. When the consumer's real income is increased to P45,000, the quantity demanded decreases to 350 seats. Mr. Newman wants to study this behavior as an economist student and wants to know why the seat demand decreased even though there was an increase in the consumer's real income. Calculate the Income Elasticity of Demand.
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