Answer:
0.31
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
Percentage change in income = [tex]\frac{1000-300}{300}[/tex] = 2.3
when income was $300, ramen was demanded twice, that is 2/7 times a week. converting to fraction gives 0.29
Percentage change in quantity = [tex]\frac{0.5 - 0.29}{0.29}[/tex] = 0.72
0.72/2.3 = 0.31
