Solved

Last Year,Tess Bought 5 Handbags When Her Income Was $54,000

Question 227

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:

verifed

Verified

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

Related Questions