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Calculate income elasticity for the household when the income of a...

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Economics
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Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.

Answer & Solution
Correct Answer: Option B
Income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5% is 0.5. Income Elasticity = (% change in quantity demanded) / (% change in income).
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Sandra Sanju
Sandra Sanju 9 years ago
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