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If Sarah's Income Rises by 20 Percent, And, as a Result

Question 146

Multiple Choice

If Sarah's income rises by 20 percent, and, as a result, she purchases 40 percent more designer clothing, her income elasticity for designer clothing is


A) 0.5.
B) 1.0.
C) 2.0.
D) Not enough information is given to answer this question.

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