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Assume That a 4 Percent Increase in Income Results in a 2

Question 73

Multiple Choice

Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good.The income elasticity of demand for the good is


A) negative and therefore the good is an inferior good.
B) negative and therefore the good is a normal good.
C) positive and therefore the good is a normal good.
D) positive and therefore the good is an inferior good.

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