If the Income Elasticity of Demand for a Good Is

question 48

Multiple Choice

If the income elasticity of demand for a good is 1.25,a 10% increase in income results in

• A)a 12.5% increase in the quantity demanded.
• B)a 12.5% decrease in the quantity demanded.
• C)a 125% increase in the quantity demanded.
• D)a decrease in quantity demanded.
• E)There is not enough information to answer this question.

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The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

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The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach a conclusion.

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