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If the Income Elasticity of Demand for a Service Is

Question 89

Multiple Choice

If the income elasticity of demand for a service is 0.6, then a 5 percent increase in income will generate a __________ in quantity demanded

A) 3 percent decrease
B) 3 percent increase
C) 8.33 percent decrease
D) 8.33 percent increase
E) 0.12 percent decrease

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