Business, 15.10.2019 05:30, azaz1819

The price of good y is constant at $3 per unit. suppose that income decreases from $60,000 to $40,000 and, as a result, the demand curve for good y shifts to the right by 2 units at every price. use this information to draw the new demand curve that would exist as a result of the decrease in income. use the midpoint method to calculate the income elasticity of demand for this good when income decreases. based on your calculations, would this good be considered "normal" or "inferior"? brieflyexplain your reasoning. (2 points)

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The price of good y is constant at $3 per unit. suppose that income decreases from $60,000 to $40,00...