Suppose the Income Elasticity of Demand for Jewelry Is 2

Multiple Choice

Suppose the income elasticity of demand for jewelry is 2. Other things equal, a 10 percent increase in consumer income will

A) decrease the quantity of jewelry purchased by 20 percent.
B) increase the quantity of jewelry purchased by 5 percent.
C) decrease the quantity of jewelry purchased by 5 percent.
D) increase the quantity of jewelry purchased by 20 percent.