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If a 1 Percent Change in Income Generates a Greater

Question 16

Multiple Choice

If a 1 percent change in income generates a greater than 1 percent change in quantity demanded for boat rentals, then the demand for boat rentals


A) is a good illustration of Engel's law
B) reflects the demand for an inferior good
C) has a price elasticity greater than one
D) is income elastic
E) is income inelastic

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