Multiple Choice
Suppose that a 20 percent increase in income increases the quantity of good A demanded from 19,200 to 20,800 units.The income elasticity of demand for good A is
A) 2.5.
B) 0.8.
C) 0.4.
D) 1.2.
E) 2.0.
Correct Answer:
Verified
Correct Answer:
Verified
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