Multiple Choice
If the income elasticity of demand for a good is 1.25,a 10% increase in income results in
A) a 12.5% increase in the quantity demanded.
B) a 12.5% decrease in the quantity demanded.
C) a 125% increase in the quantity demanded.
D) a decrease in quantity demanded.
E) There is not enough information to answer this question.
Correct Answer:
Verified
Correct Answer:
Verified
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