Answer to Question #42270 in Microeconomics for abdullah
10 a. What is the price elasticity of her demand for clothing?
10 b. What is the income elasticity of her demand for clothing
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
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