Read the article In time of need, Apple's new icon, a nation turns its lonely eyes to you and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.
Define the term income elasticity of demand.
Examine the likely value of the income elasticity of demand for iPods.
- two goods (other than iPods) that are likely to face an increase in demand and
- two goods that are likely to face a decrease in demand as a result of the US fiscal stimulus.