Multiple Choice
Last year,Tess bought 5 handbags when her income was $54,000.This year,her income is $60,000,and she purchased 7 handbags.Holding other factors constant,it follows that Tess's income elasticity of demand is about
A) 0.32,and Tess regards handbags as inferior goods.
B) 0.32,and Tess regards handbags as normal goods.
C) 3.17,and Tess regards handbags as inferior goods.
D) 3.17,and Tess regards handbags as normal goods.
Correct Answer:

Verified
Correct Answer:
Verified
Q222: In the case of perfectly inelastic demand,<br>A)the
Q223: An increase in price causes an increase
Q224: If a 10% decrease in price for
Q225: Suppose that gasoline prices increase dramatically this
Q226: Figure 5-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 5-3
Q228: Holding all other forces constant,when the price
Q229: If the price elasticity of demand for
Q230: The price elasticity of demand changes as
Q231: You and your college roommate eat three
Q232: Whether a good is a luxury or