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If Per Capita Income Increases by 10% and Household Expenditure

Question 130

Multiple Choice

If per capita income increases by 10% and household expenditure on fur coats increases by 15%,one can conclude that the price elasticity of demand for fur coats is


A) elastic.
B) inelastic.
C) unity.
D) positive.
E) not determinable from the information given.

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