Multiple Choice
If Ana's income elasticity of demand for rice is -2, what happens to the quantity of rice she buys if her income decreases by 20 percent?
A) She buys 20 percent more rice.
B) She buys 20 percent less rice.
C) She buys 40 percent less rice.
D) She buys 40 percent more rice.
Correct Answer:
Verified
Correct Answer:
Verified
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