The market demand for wheat is Q = 100 – 2p + 1pb + 2Y. If the price o
The market demand for wheat is Q = 100 – 2p + 1pb + 2Y. If the price of wheat, p, is $2, and the price of barley, pb, is $3, and income, Y, is $1000, the income elasticity of wheat
A) is 2 (1000/2099).
B) is 2.
C) is 1/2 (1000/2099).
D) cannot be calculated from the information provided.
ANSWER
A
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