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) = 40

A 0.20
B 0.10
C 0.70
D 0.07
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