{"id":173,"date":"2016-09-02T09:17:09","date_gmt":"2016-09-02T16:17:09","guid":{"rendered":"http:\/\/pages.palomar.edu\/jesteban\/?page_id=173"},"modified":"2017-03-27T13:54:06","modified_gmt":"2017-03-27T20:54:06","slug":"elasticity-lesson-3","status":"publish","type":"page","link":"https:\/\/pages.palomar.edu\/jesteban\/home\/elasticity-lesson-3\/","title":{"rendered":"Elasticity Lesson 3"},"content":{"rendered":"
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Income Elasticity<\/h2>\n

Income elasticity will provide data regarding changes in income and the quantity demanded of a good.\u00a0 As the income of an individual goes up by a certain percent - what happens to the quantity demanded of certain goods?\u00a0 We know that elasticity will tell us if the good is responsive or not however Income Elasticity also will tell us if a good is an inferior good or a normal good.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Let's practice Income Elasticity:<\/h2>\n
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  1. Calculate Income Elasticity using the table below.\u00a0 What does the answer tell you?\u00a0 What policy should the government follow when trying to raise taxes on this item?\u00a0 Why?\n\n\n\n\t\n\n\t\n\t
    Income<\/th>QUANTITY of Good B<\/th>\n<\/tr>\n<\/thead>\n
    $[randnum min=\"1200\" max=\"3000\" id=\"c\" decimals=\"2\"]<\/td>[randnum min=\"2\" max=\"10\" id=\"e\"]<\/td>\n<\/tr>\n
    $[randnum id=\"c\" multiply=\"1.25\" decimals=\"2]<\/td>[randnum id=\"e\" multiply=\"2.5\"]<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n
  2. You know that the value of Income Elasticity for Iphones is 2.5 and you just read that Income for US workers went up by 10% - what do you expect will happen to the quantity demanded of Iphones?\u00a0 Why?<\/li>\n
  3. Calculate Income Elasticity using the table below. Is this an inferior good?\u00a0 Why?\n\n\n\n\t\n\n\t\n\t
    Income<\/th>QUANTITY of Good B<\/th>\n<\/tr>\n<\/thead>\n
    $[randnum min=\"1200\" max=\"3000\" id=\"h\" decimals=\"2\"]<\/td>[randnum min=\"2\" max=\"10\" id=\"f\"]<\/td>\n<\/tr>\n
    $[randnum id=\"h\" multiply=\"0.90\" decimals=\"2]<\/td>[randnum id=\"f\" multiply=\"0.75\"]<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n<\/ol>\n

    \u00a0<\/p>\n

    \u00a0<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

    Income ElasticityIncome elasticity will provide data regarding changes in income and the quantity demanded of a good.\u00a0 As the income of an individual goes up by a certain percent – what happens to the quantity demanded of certain goods?\u00a0 We … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":115,"featured_media":0,"parent":13,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-173","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/users\/115"}],"replies":[{"embeddable":true,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/comments?post=173"}],"version-history":[{"count":13,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/173\/revisions"}],"predecessor-version":[{"id":422,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/173\/revisions\/422"}],"up":[{"embeddable":true,"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/pages\/13"}],"wp:attachment":[{"href":"https:\/\/pages.palomar.edu\/jesteban\/wp-json\/wp\/v2\/media?parent=173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}