a. Calculate and interpret the income elasticity for Product B, if a customer’s income changes from P15,000 to P25,000. and give interpretation b. Calculate and interpret the income elasticity for Product A, if another customer’s income changes from P15,000 to P25,000. and give interpretation

a. Calculate and interpret the income elasticity for Product B, if a customer’s income changes from P15,000 to P25,000. and give interpretation b. Calculate and interpret the income elasticity for Product A, if another customer’s income changes from P15,000 to P25,000. and give interpretation

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 5P

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Question

answer the following

a. Calculate and interpret the income elasticity for Product B, if a customer’s income changes from
P15,000 to P25,000. and give interpretation
b. Calculate and interpret the income elasticity for Product A, if another customer’s income
changes from P15,000 to P25,000. and give interpretation

3. The following table shows the daily quantity sold for two (2) products in Brigg's Warehouse according
to the average income of customers.
Quantity demanded if income is P15,000
Quantity demanded if income is P25,000
Product A
20
15
Product B
12
18

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