Suppose Janice buys the following amounts of various food items depending on her weekly income: Weekly Income Hamburgers Pizza Ice Cream Sundaes $500 3 3 2 $750 4 2 2 1. Compute Janice’s income elasticity of demand for hamburgers. 2. Compute Janice’s income elasticity of demand for pizza. 3. Compute Janice’s income elasticity of demand for ice cream sundaes. 4. Classify each good as normal or inferior.
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