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Income elasticity of demand for apple is 2. Cross elasticity of demand between apple quantity and orange price is 0.5, Explain the impact on apple's revenue if consumers' income increase by 10% and orange price fall by 15%.My question:

Income elasticity of demand for apple is $$\gamma$$. Cross elasticity of demand between apple quantity and orange price is $$\psi$$, What is the impact on apple's revenue if consumers' income increase by x% and orange price fall by y%?

AmWhat I think the answer is?: Am I right I say that revenue would increase for the first instance (income) and the revenue will fall for the second instance. However, Howhow would I know the percentage of revenue increase in the first instances and fall in the second instances.?

Income elasticity of demand for apple is 2. Cross elasticity of demand between apple quantity and orange price is 0.5, Explain the impact on apple's revenue if consumers' income increase by 10% and orange price fall by 15%.

Am I right I say that revenue would increase for the first instance (income) and the revenue will fall for the second instance. However, How would I know the percentage of revenue increase in the first instances and fall in the second instances.

My question:

Income elasticity of demand for apple is $$\gamma$$. Cross elasticity of demand between apple quantity and orange price is $$\psi$$, What is the impact on apple's revenue if consumers' income increase by x% and orange price fall by y%?

What I think the answer is?: Am I right I say that revenue would increase for the first instance (income) and the revenue will fall for the second instance. However, how would I know the percentage of revenue increase in the first instances and fall in the second instances?

2 title: income elasticity, tags

# How to interpret income elasticity of demand

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# How to interpret elasticity of demand

Income elasticity of demand for apple is 2. Cross elasticity of demand between apple quantity and orange price is 0.5, Explain the impact on apple's revenue if consumers' income increase by 10% and orange price fall by 15%.

Am I right I say that revenue would increase for the first instance (income) and the revenue will fall for the second instance. However, How would I know the percentage of revenue increase in the first instances and fall in the second instances.