Home / Questions / Our income increases from £1000 a month to £1200 a month. As a result, you increase your p
Our income increases from £1000 a month to £1200 a month. As a result, you increase your p
Our income increases from £1000 a month to £1200 a month. As a result, you increase your purchases of pizzas from 8 to 12 per month, and you decrease your purchases of cheese sandwiches from 15 to 10 per month. (a) Calculate your income elasticity of demand for pizzas and for cheese sandwiches. (b) What kind of goods are pizzas and cheese sandwiches for you? (c) Show using diagrams the effects of your increase in income on your demand for pizzas and cheese sandwiches.
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