Income Elasticity of Demand:
Lynnie always loved to paint, but couldn't often afford to do so on her salary. When her salary
was $2500 a month, she was able to afford to paint 3 times a year. When her income increased
to $3200 a month, she was able to afford to paint 5 times a year. What is the income elasticity of
demand?
Variables:
Solve showing ALL work:
Income
Elasticity of Demand
Q₂-Q₁
(Q₁+Q₂)/2
12-11
(+1₂)/2
