Which of the Following Is Most Likely to Be TRUE

question 29

Multiple Choice

Which of the following is most likely to be TRUE about relative income elasticities of demand for oatmeal and diamond bracelets?

• A)Income elasticity of demand for diamond bracelets exceeds that of oatmeal.
• B)Income elasticity of demand for oatmeal exceeds that of diamond bracelets.
• C)Income elasticity of demand for diamond bracelets equals that of oatmeal.
• D)It is not possible to make any prediction about relative income elasticities.

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