When Fred's Income Was $100 Per Week, 10 Units of Good

Multiple Choice

When Fred's income was $100 per week, 10 units of good X were demanded. Now his income is $150 per week and 12 units of good X are demanded. Using the percentage change formula, the income elasticity of demand for good X equals ________.

A) 0.45
B) 0.40
C) 2.20
D) 2.50