Question

When incomes rise by 10 percent and other things remain the same, people switch from frozen fish cakes to fresh fish. The quantity of fresh fish demanded increases by 15 percent. The income elasticity of demand for fresh fish is Answer to 1 decimal place > If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign

Answer 1

Explanation:

Income elasticity = % change in the quantity / % change in the income

= 15 / 10

= 1.5

the income elasticity is 1.5 for fresh fish.