Suppose the Demand for Gourmet Coffee Can Be Represented by a Linear

Multiple Choice

Suppose the demand for gourmet coffee can be represented by a linear demand curve. At the prevailing market price the income elasticity of demand for gourmet coffee is 2. When income rises the demand curve for gourmet coffee:

A) becomes less elastic at every price.
B) becomes less elastic at the price that prevailed before the change in income
C) becomes more elastic at every price
D) becomes more elastic at the price that prevailed before the change in income