Valdez Wang
10/11/2023 · Junior High School
d. Assume for another good C that the own Price elasticity of demand (PED) for Good C is -2 and the Income elasticity of Demand (YED) for Good C is 3 . (i) Calculate the percentage change in demand that will occur, when income declines by twenty percent \( (20 \%) \). [4 marks] (ii) Using the demand function presented for Good X in question a, determine the new quantity of Good X demanded when income declines by twenty percent \( (20 \%) \). [4 marks]
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(i) When income declines by 20%, the demand for Good C decreases by 60%.
(ii) To find the new quantity of Good X demanded, the demand function for Good X is required.
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