When the income level was Rs.1000, the quantity demanded was 50 last year. In this year, the demand went up to Rs.55, when the income rose to Rs.1020. What is the income elasticity of demand this year?

Exam Question

When the income level was Rs.1000, the quantity demanded was 50 last year. In this year, the demand went up to Rs.55, when the income rose to Rs.1020. What is the income elasticity of demand this year?

• 1. 4.81
• 2. 1.122
• 3. 0.25
• 4. 4.10
• 5. 4.00

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