Multiple Choice
Suppose the price elasticity of demand for good X is 1.5.If household income increases by 25%,ceteris paribus,what is the change in quantity demanded for good X?
A) a 37.5% increase in quantity demanded
B) a 3.75% increase in quantity demanded
C) a 0.375% increase in quantity demanded
D) no change in quantity demanded
E) There is not enough information to answer this question.
Correct Answer:
Verified
Correct Answer:
Verified
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