Solved

If the Income Elasticity of Demand for Some Good Is

Question 23

Multiple Choice

If the income elasticity of demand for some good is 2.4,a 10% increase in income results in


A) a 24% increase in the quantity demanded.
B) a 240% increase in the quantity demanded.
C) a 24% decrease in quantity demanded.
D) a 2.4% increase in the quantity demanded.
E) a 240% decrease in quantity demanded.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q18: Consider two demand curves and the same

Q19: If two goods,X and Y,have a positive

Q20: If the demand for some good fluctuates,but

Q21: If Vicky's income increases by 8% and

Q22: Suppose an analysis of the possible effects

Q24: Consider an excise tax imposed on daily

Q25: Normal goods<br>A)have negative elasticity of supply.<br>B)are sometimes

Q26: The elasticity of supply for a given

Q27: If the total expenditure on clothing decreases

Q28: If the total expenditure on cars increases