Multiple Choice
Suppose Joe purchases 10 lottery tickets per month when his monthly income is $200. Joe receives a raise at work, giving him an extra $40 per month in take-home pay, and Joe now purchases 15 lottery tickets per month. What is Joe's income elasticity of demand for lottery tickets?
A) 2.5
B) 1.
C) 0.4.
D) 0.25.
Correct Answer:
Verified
Correct Answer:
Verified
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