Multiple Choice
Last year,Carolyn bought 6 pairs of earrings when her income was $40,000.This year,her income is $52,000,and she purchased 7 pairs of earrings.Holding other factors constant,it follows that Carolyn's income elasticity of demand is about
A) 0.59, and Carolyn regards earrings as an inferior good.
B) 0.59, and Carolyn regards earrings as a normal good.
C) 1.7, and Carolyn regards earrings as an inferior good.
D) 1.7, and Carolyn regards earrings as a normal good.
Correct Answer:

Verified
Correct Answer:
Verified
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