BFN 112 Theory Question: Income Elasticity of Demand Question

100 Level Department of Social Science And Humanities exam questions and detailed answers. Download the answers in document format. Correct, detailed, and straightforward answers.

Questions:

• If Ade’s monthly income rises from N 12,000 to N 18,000 and this increases his consumption of Bournvita from 2 tins to 4 tins. Determine the income elasticity of demand for bournvita and interpret your result.

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