Let Ed_GI refer to the Income Elasticity for Gasoline

Multiple Choice

Let Ed_GI refer to the income elasticity for gasoline.Suppose Ed_GI= 2; then this means that if income

A) increases by 2 percent,Qd_G will increase by 1 percent.
B) decreases by 1 percent,Qd_G will decrease by 2 percent.
C) increases by $1,Qd_G will decrease by 2 percent.
D) decreases by 2 percent,Qd_G will decrease by 1 percent.