Question
The demand function for a good is X = 5000 – 10Px
+ 15Py + 0.2Y, where in Px is the price of X, Py is the price of another good and Y is the income. Calculate the income elasticity of demand when Y = 2000, P(x) = 25 and P(y) = 40Solution
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i. Â Â When RBI expects that prices of commodities are increasing, ...
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