Multiple Choice
If the income elasticity of demand for some good is 2.4, a 10 percent increase in income results in
A) a 240 percent decrease in quantity demanded.
B) a 240 percent increase in the quantity demanded.
C) a 24 percent increase in the quantity demanded.
D) a 24 percent decrease in quantity demanded.
E) a 2.4 percent increase in the quantity demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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