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    Exam 3: Empirical Methods for Demand Analysis
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    If a Consumer Increases Her Quantity of Ice Cream Consumed
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If a Consumer Increases Her Quantity of Ice Cream Consumed

Question 21

Question 21

Multiple Choice

If a consumer increases her quantity of ice cream consumed by 100% when her income rises by 25%, then her income elasticity of demand for ice cream is


A) 8.0.
B) 4.0.
C) .25.
D) .08.

Correct Answer:

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