Determine income elasticity of demand

This given figure as in below demonstrates how the consumption of goods A, B, C and D differs as a family’s income changes. There income elasticity of demand equivalents 1 for: (w) good A. (x) good B (y) good C. (z) good D.

2414_Income Elasticity of Demand.png

Please choose the right answer from above...I want your suggestion for the same.

View Complete Question

Related Questions in Microeconomics

Q : Monopolist in the long run Within the

Within the long run, here a monopolist: (w) will produce a positive economic profit. (x) will produce an economic profit of zero. (y) may incur an economic loss. (z) will produce an economic profit of zero or greater.

Q : Problem on Determinants of Demand I

I have a problem in economics on Determinants of Demand. Please help me in the following question. Income and tastes most directly influence the: (i) Demand. (ii) Market equilibrium (iii) Prices. (iii) Quantities. (iv) Supply.

Q : What is fiscal deficit Fiscal deficit :

Fiscal deficit: When the total government expenses are more than total government receipts exclusive of borrowing it is termed as fiscal deficit. Fiscal deficit = Total Government Expenditure – Tot

Q : Surviving firms in declining

When firms exit a declining competitive industry, in that case surviving firms will: (i) reduce their outputs and prices. (ii) experience higher prices and profits. (iii) automate to adjust to lower wages. (iv) sell more output at lower prices. <

Q : Defined Welfare Recipients By

By description, a family of four receives welfare when it: (1) pays a smaller share of taxes than its share of benefits from government. (2) lives below the poverty line. (3) includes a student attending college on an academic scholar

Q : Proprietorships-Limited liability Which

Which of the given below is not a benefit of the sole proprietorship? (i) Limited liability. (ii) Easiness of organization. (iii) Flexibility. (iv) Freedom from govt. regulation. Choose the right answer from the above options.

Q : Kinked demand curve about product price

When an oligopolist is aware about the firm faces a kinked demand curve, this: (1) may cut price along with little expected reaction by rivals. (2) can avoid consumer demand and preferences. (3) may keep product price despite large ch

Q : Strategic Barriers to Entry The

The successful employment of expensive marketing techniques through established competitors in an oligopoly: (w) encourages entry by other profit maximizing firms. (x) raises the minimum efficient scale of production for new entrants. (y) acts as a re

Q : Predictable results of unexpected

Predictable results of unexpected development of demand for a competitively produced good comprise increases and in that case gradual decreases in the: (w) price of the good and the profits of producers. (x) consumer surplus derived from the good. (y)

Q : Demand for a good at price elasticity

The curve which could demonstrate the demand for a good which has price elasticity equal to one is within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1461334 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1934779
Asked

3,689

Active Tutors

1461334

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment