Nadia consumes two goods, food and clothing. The price of food is $2, the price of clothing

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Nadia consumes two goods, food and clothing. The price of food is $2, the price of clothing is $5, and her income is

$1,000. Nadia always spends 40 percent of her income on food regardless of the price of food, the price of clothing, or her income.

a. What is her price elasticity of demand for food?

b. What is her cross-price elasticity of demand for food with respect to the price of clothing?

c. What is her income elasticity of demand for food?

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Economics

ISBN: 287201

6th Global Edition

Authors: Daron Acemoglu, David Laibson, John A. List

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Question Posted: Nov 18, 2024 01:00 AM

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Nadia consumes two goods, food and clothing. The price of food is $2, the price of clothing

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Economics

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