K
kika258
Member
April 2010 Q 22 says:
A consumer always spends one quarter of his income on travel. What are his price elasticity of dmand for travel and his income elasticity of demand for travek respectively:
A 1 and 0.25
B 0 and 0.25
C 1 and 0
D 0 and 1.
D is the answer. Can someone explain why? I can't figure out how could i have come to the answer.
A consumer always spends one quarter of his income on travel. What are his price elasticity of dmand for travel and his income elasticity of demand for travek respectively:
A 1 and 0.25
B 0 and 0.25
C 1 and 0
D 0 and 1.
D is the answer. Can someone explain why? I can't figure out how could i have come to the answer.