Let Ed_GIrefer to the Income Elasticity for Gasoline

Multiple Choice

Let Ed_GIrefer to the income elasticity for gasoline. Suppose Ed_GI= 2, then this means that

A) if income increases by 2%, then Qd_Gwill increase by 1%
B) if income decreases by 1%, then Qd_Gwill decrease by 2%
C) if income increases by $1, then Qd_Gwill decrease by 2%
D) if income decreases by 2%, then Qd_Gwill decrease by 1%