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The Formula for the Income Elasticity of Demand Can Be η\eta

Question 50

Multiple Choice

The formula for the income elasticity of demand can be written as:


A) η\eta I = ( Δ\Delta Q / Δ\Delta I) (I / Q) .
B) η\eta I = ( Δ\Delta I / Δ\Delta Q) (I / Q) .
C) η\eta I = ( Δ\Delta Q / Δ\Delta I) (Q / I) .
D) η\eta I = ( Δ\Delta I / Δ\Delta Q) (Q / I) .
E) none of the above.

Correct Answer:

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