The Income Elasticity of Demand for Restaurant Meals Is 1

Multiple Choice

The income elasticity of demand for restaurant meals is 1.61. So

A) if income increases by 16.1 percent, the quantity demanded of restaurant meals will increase by 10 percent.
B) if income increases by 10 percent, the quantity demanded of restaurant meals will increase by 16.1 percent.
C) restaurant meals are an income elastic normal good.
D) Both answers B and C are correct.