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maxi12312345
10.07.2019 •
Business
Consider the markets for mobile and landline telephone service. suppose that when the average income of residents of plainville is $55,000 per year, the quantity demanded of landline telephone service is 12,500 and the quantity demanded of mobile service is 28,000. suppose that when the price of mobile service rises from $100 to $120 per month, the quantity demanded of landline service increases to 11,000. suppose also that when the average income decreases to $50,000, the quantity demanded of mobile service decreases to 26,000. what is the income elasticity of demand for mobile service? show calculation and interpret the result.
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Ответ:
Income elasticity of demand for mobile services = 1.885
Explanation:
Given :
Income 1 = $55000
Income 2 = $60000
Demand 1 = 28000
Demand 2 = 33000
Formula for income elasticity as per mid point method is as follow:
i.e.![\left ( (33000-28000)/(33000 + 28000)/2 \right )\div\left ( (60000-55000)/(60000+55000)/2\right ) \right )](/tpl/images/1293/1608/71b87.png)
= 1.885
Since income elasticity of demand is positive and greater than 1 therefore mobile service is considered as a superior goods.
Ответ:
Graph A
Explanation:
we need to find the slope using the slope formula y2-y1/x2-x1
Graph A:3-0/4-0
3/4
Graph B: 4-0/4-0
1
Graph C: 5-0/4-0
5/4
Graph D 8-0/4-0
2
These slopes are the cost per pound of apple and graph A has the smallest slope
hopes. This helps please mark brainliest