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# Please can I have help with this economics question watch

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1. An individual with a monthly income of £2000 regularly visits the cinema four times a month. His monthly income then falls to £1000 and he reduces the number of visits to the cinema to three times per month. The best estimate for income elasticity of demand is...
A) 0.5
B)-0.33
C)2.0
D)-0.5
2. (Original post by hbos14)
An individual with a monthly income of £2000 regularly visits the cinema four times a month. His monthly income then falls to £1000 and he reduces the number of visits to the cinema to three times per month. The best estimate for income elasticity of demand is...
A) 0.5
B)-0.33
C)2.0
D)-0.5
YED= (change in QD/change in Y)* ( original Y/Original QD)
=(3-4/1000-2000)*(2000/4)=0.5

NOTE: Calculate change->new-old

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Updated: January 8, 2017
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