A Study of Consumers in an Area Found That as Family

Multiple Choice

A study of consumers in an area found that as family income increased from $25 000 per year to $35 000 per year and other factors held constant, the number of houses purchased increased from 7000 per year to 11 000 per year. This finding indicates an income elasticity of demand coefficient for housing over this family income range of:

A) 0.22.
B) 0.75.
C) 1.33.
D) 4.50.