Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
If the Income Elasticity of Demand for tourism in the Chinese outbound market was 3, what would this mean?
If the Income Elasticity of Demand for tourism in the Chinese outbound market was 3, what would this mean?
Expert Solution
Income Elasticity of demand = Percentage change in quantity demanded / Percentage change in income
The decision rules are:
- If Income Elasticity of demand is positive but less than 1, the good is a normal and necessary good.
- If Income Elasticity of demand is positive and greater than 1, the good is a normal and luxury good.
- If Income Elasticity of demand is negative, the good is an inferior good.
Since, the Income Elasticity of Demand for tourism in the Chinese outbound market was 3, the demand for tourism in the Chinese outbound market is a normal and luxury good.
Archived Solution
Unlocked Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
Already a member? Sign In
Important Note:
This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.
For ready-to-submit work, please order a fresh solution below.
For ready-to-submit work, please order a fresh solution below.
Or get 100% fresh solution
Get Custom Quote
