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If the Income Elasticity of Demand for Noodles Is -2

Question 38

Multiple Choice

If the income elasticity of demand for noodles is -2 and the percentage change in the quantity consumed is 5 percent,what is the percentage change in income?


A) 2.5 percent
B) 10 percent
C) -2.5 percent
D) -10 percent
E) -0.4 percent

Correct Answer:

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