# income-elasticity of demand coefficient

A) Use the arc-approximation

formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8).

b) Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 10% increase in the price of its close substitute, product Y, causes the quantity demand of

product X to increase by 15%.

c) Calculate the income-elasticity of demand coefficient for a product for which a 5% increase in consumers' income will increase the quantity demanded by 4%.

https://brainmass.com/economics/demand-supply/income-elasticity-of-demand-coefficient-141601

#### Solution Summary

Calculate the income-elasticity of demand coefficient.

$2.19