Question 4 A table below provides estimated income elasticity of demand of various goods and services (John Cawley, Chri

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Question 4 A Table Below Provides Estimated Income Elasticity Of Demand Of Various Goods And Services John Cawley Chri 1 (149.46 KiB) Viewed 67 times

Question 4 A table below provides estimated income elasticity of demand of various goods and services (John Cawley, Christopher J. Ruhm, in Handbook of Health Economics, 2011). Goods and Services Cigarettes Alcohol Sunflower oil Estimated Income Elasticity of Demand 0.33 0.768 1.32 To remain competitive in the market and earn more revenue, a company hires you as a consultant to provide pricing strategy for each of these products they sell. Use Law of demand and price elasticity of demand to support your explanation and also draw a demand curve to illustrate the strategy. a