Unformatted text preview: 2.38. E PC,SD = 2.38 Elastic; substitutes A 1% increase in P Soft Drinks Î 2.38% increase in Q D Popcorn + vice versa. (d) The price elasticity of rail service is 0.89. E P = 0.89 Inelastic; supply A 1% increase in P Rail Î 0.89% increase in Q S Rail + vice versa. (e) The income elasticity of dental services is 1.00. E I = 1.00 Unit elastic; superior / normal A 1% increase I Î 1% increase in Q D dental service + vice versa....
View Full Document
This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09
- Income Elasticity