Answer to Question #106397 in Economics for Cee

Question

An online Merchant estimates the price elasticity for rice is estimated to be -0.4 and the income elasticity is 0.8. At a price $0.40 per pound and a per capita income of $ 20,000, the demand for rice is 50 million tons per year.  Required • If per capita increases to $20,500, what will be the quantity demanded of rice • If price of rice increases to $0.41 per pound and income per capita remains at $ 20,000, what will be the quantity demanded

Answer 1

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