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    Exam 4: Elasticity
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    If Income Increases by 2
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If Income Increases by 2

Question 513

Question 513

Multiple Choice

If income increases by 2.0 percent, and quantity demanded of a good increases by 0.2 percent, the income elasticity for the good is


A) 0.22.
B) 0.002.
C) 0.10.
D) 1.00.

Correct Answer:

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