Question

Please help need this done for class tomorrow!

Answer 1

0.31

Step-by-step explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income

Income elasticity of demand = percentage change in quantity demanded / percentage change in income

Percentage change in income =
`(1000-300)/(300)` = 2.3

when income was $300, ramen was demanded twice, that is 2/7 times a week. converting to fraction gives 0.29

Percentage change in quantity =
`(0.5 - 0.29)/(0.29)` = 0.72

0.72/2.3 = 0.31