Own price, Px = $30 Price of a related good, Py = $4 Quantity demanded = 24.75 Price of a related good, Pz = $275 Consumer income, Y = $20 comma 000 The income elasticity of demand 'xi', when equilibrium quantity is 24.75 units and income is $20 comma 000, is equal to . 808 (enter your response rounded to three decimal places). In this case the good is:

Explanation:

Given the following ;

from the calculation of the income elasticity of demand which is less than 1, hence the good is a NECESSITY and not a Luxury.

If IED > 1 ; Goods is Luxury

if IED < 1 ; Goods is necessity

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.