ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Your salary increases by 20%, as a result you increase your purchases of pizzas from 8 to 12 per month, and decrease purchase of cheese sandwiches from 15 to 10 per month. What is the YED for both and what type of goods?
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Pizza 0.4 YED; normal good/ Cheese sandwiches-0.6 inferior good
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YED Pizza 0.2 normal good, Cheese sandwiches 0.6 normal good
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YED Pizza-0.6 inferior good, Cheese sandwiches-0.4 inferior good
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YED Pizza 1.2 luxury good, Cheese sandwiches-0.6 inferior good
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Explanation:
There is 1 question to complete.