107 791
Assignments Done
100%
Successfully Done
In August 2024

# Answer to Question #42270 in Microeconomics for abdullah

Question #42270
Layla spends 25% of her income on clothes, regardless of the price of clothes, and regardless of her income each year.
10 a. What is the price elasticity of her demand for clothing?
10 b. What is the income elasticity of her demand for clothing
1
Expert's answer
2014-05-15T09:08:54-0400
If Layla spends 25% of her income on clothes,regardless of the price of clothes, and regardless of her income each year:

a) Her demand for clothes is unit-elastic, because if price increases, the quantity demanded will decrease proportionally, so Ed = 1

b) Her demand for clothes is also unit-elastic, because for any change of income, the percent change of the quantity demanded will be the same, so Ei = 1

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

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS