Multiple Choice
The demand for answering machines is Q = 1,000 - 150P + 25I.Assume that per capita disposable income I is $200.When the price of answering machines is P = $10,the income elasticity of demand is:
A) 2.5.
B) 0.11.
C) 1.0.
D) 25.
E) 1.11.
Correct Answer:
Verified
Correct Answer:
Verified
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