The average annual income rises from $25,000 to $38,000, and the quantity of bread consumed in a year by the average person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption?

asked Jun 16, 2022 7.6k views

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7 votes

Answer:

the income elasticity of bread is 20/39 and bread is an inferior good

Punchline answered Jun 23, 2022

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