Answer to Question #142340 in Finance for Mr. Dinesh Pal Singh

Question #142340
37. The price elasticity for rice is estimated to be –0.4 and the income elasticity is 0.8. At a price of $0.40 per pound and a per capita income of $20,000, the demand for rice is 50 million tons per year.
i) Is rice an inferior good, a necessity, or a luxury? Explain.
ii) If per capita income increases to $20,500, approximately what will be the quantity demanded rice?
1
Expert's answer
2020-11-04T01:46:03-0500
Dear Mr. Dinesh Pal Singh, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS