Multiple Choice
A good has an income elasticity of +0.5.An increase in income from $15,000 to $25,000 will lead to a
A) 2.5 percent increase in the quantity demanded of the good.
B) 5 percent increase in the quantity demanded of the good.
C) 5 percent decrease in the quantity demanded of the good.
D) 25 percent decrease in the quantity demanded of the good.
E) 25 percent increase in the quantity demanded of the good.
Correct Answer:
Verified
Correct Answer:
Verified
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