You are the marketing manager for XYZ Corp. You have this regression result for your product:
Q = 2000 - 3.S*P + 1 .2*1. Right now, your price is 10, and the average income of your customers is $30,000.
Compute income elasticity?
Is your good a normal good or an inferior good? ,
You expect a recession. You estimate that your customer's average income will fall 5% due to this recession. Estimate the impact on your sales.