Multiple Choice
If the income elasticity of demand for a good is 0.75,a 25% increase in income results in
A) an 18.75% increase in quantity demanded.
B) a 3% increase in quantity demanded.
C) a 0.1875% increase in quantity demanded.
D) a 3% decrease in quantity demanded.
E) There is not enough information to answer.
Correct Answer:
Verified
Correct Answer:
Verified
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