Answer on Microeconomics Question for Jay
Devon's total income rises from $35 to $55, ceteris paribus. Given that Devon changes his of choice of windsurfing and snorkeling, what is his income elasticity for windsurfing?
The correct answer is 0.64. However, I do not know the steps to find this value.
As the total utility for windsurfing is higher, than for snorkeling, Devon will increase spending time only for windsurfing.
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