Multiple Choice
When Frank's income was $100 per week, 10 units of good A were demanded. Now his income is $150 per week and 12 units of good A are demanded. Using the percentage change formula, the income elasticity of demand for good A equals
A) 0.45.
B) 0.40.
C) 2.20.
D) 2.50.
Correct Answer:
Verified
Correct Answer:
Verified
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