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Say That a Consumer's Income Elasticity of Demand Over the Relevant

Question 14

Multiple Choice

Say that a consumer's income elasticity of demand over the relevant range is equal to 2. When she has a monthly income of $2,000, she spends $600 on food. If her monthly income rose to $4,000, how much would she spend on food?


A) ​$900.
B) ​$1200.
C) ​$1800.
D) ​$2400.

Correct Answer:

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