Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-Given the above equation, the income elasticity of demand for noodles is _____.

A) 5
B) 0.5
C) 2
D) 2.5
E) 1.6