Problem: If there has been a 10 percent increase in consumer income between two periods, what was the percentage change in the demand for foreign travel? For tobacco products? For flour? Use the income elasticity values in the table below.
Commodity Income Elasticity
Wine (Canada) 2.59
Beef (US) 1.06
Cheese (UK) 0.37
Chicken (US) 0.28
Potatoes (UK) -0.32
Flour (US) -0.36
elicitricy (Household, US) 1.94
European cars (US) 1.93
Asian cars (US) 1.65
Domestic cars (US) 1.63
Gasoline (US) 1.20
cigarettes (US) 0.50