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Income elasticity of demand and cross-price elasticity of demand
Income elasticity of demand and cross-price elasticity of demand
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When consumers' income changes, they buy more of some goods and less of others. Income elasticity of demand is a measure of those changes. Once we calculate income elasticity, we can use that value to determine whether consumers consider goods normal or inferior. Apples and oranges are substitutes for each other... unless you are making a fruit salad! We can determine whether consumers view goods

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