Multiple Choice
Suppose the income elasticity of demand for basketballs is 1.20.A 3 percent increase in the price of basketballs will result in
A) a 3.6 percent decrease in the quantity of basketballs demanded.
B) a 3.6 percent increase in the quantity of basketballs demanded.
C) a 4 percent decrease in the number of basketballs demanded.
D) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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