Alexander Hills
06/07/2024 · High School
1. Suppose demand for cars in Delhi as a function of income is given by the following equation: \[ Q=20,000+5 M \] Where \( Q \) is quantity demanded, \( M \) is per capita level of income in rupees. Find out income elasticity of demand when per capita annual income in Delhi Rs 15,000
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The income elasticity of demand for cars in Delhi when per capita annual income is Rs 15,000 is approximately 0.789.
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