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If a 5 Per Cent Increase in Income Brings About

Question 1

Multiple Choice

If a 5 per cent increase in income brings about a 10 per cent decrease in the demand for a good, then the


A) good is an inferior good.
B) income elasticity of demand is 0.5.
C) income elasticity of demand is 5.0.
D) income elasticity of demand is 2.0.
E) good is a normal good.

Correct Answer:

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