The demand d for apples in the us as a function of income r


Question: The demand D for apples in the US as a function of income r for the period 1927 to 1941 was estimated as D = Ar1.23, where A is a constant. Find and interpret the elasticity of D w.r.t. r. (This elasticity is called the income elasticity of demand, or the Engel elasticity.)

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Mathematics: The demand d for apples in the us as a function of income r
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