Refer to the accompanying graph.

a.Calculate the income elasticity of demand for televisions at a price of $550.
b.Are televisions a luxury good,necessity good,or inferior good? Explain.
c.Name a good for which consumption would likely fall when there is an increase in income from $20,000 to $30,000.Explain your reasoning.

Question

Refer to the accompanying graph.
  
a.Calculate the income elasticity of demand for televisions at a price of $550.
b.Are televisions a luxury good,necessity good,or inferior good? Explain.
c.Name a good for which consumption would likely fall when there is an increase in income from $20,000 to $30,000.Explain your reasoning.

Quizplus · Accepted Answer

The Answer of Refer to the accompanying graph.
  
a.Calculate the income elasticity of demand for televisions at a price of $550.
b.Are televisions a luxury good,necessity good,or inferior good? Explain.
c.Name a good for which consumption would likely fall when there is an increase in income from $20,000 to $30,000.Explain your reasoning.

Refer to the Accompanying Graph