Multiple Choice
If the income elasticity of demand of houses is exactly 1.40.Due to a recession,you expect incomes to drop by 25% next year.How will consumers adjust their purchase for houses?
A) Buy 35% more houses
B) Buy 35% less houses
C) Buy 25% more houses
D) Buy 25% less houses
Correct Answer:
Verified
Correct Answer:
Verified
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