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    Principles of Microeconomics
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    Exam 5: Elasticity
  5. Question
    If Income Increases by 10% And, in Response, the Quantity
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If Income Increases by 10% And, in Response, the Quantity

Question 100

Question 100

Multiple Choice

If income increases by 10% and, in response, the quantity of housing demanded increases by 7%, then the income elasticity of demand for housing is


A) -1.
B) -0.7.
C) 0.7.
D) 1.43.

Correct Answer:

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