The Income Elasticity of Demand for Restaurant Meals Is 1

question 326

Multiple Choice

The income elasticity of demand for restaurant meals is 1.61. So

• A) if income increases by 16.1 percent, the quantity demanded of restaurant meals will increase by 10 percent.
• B) if income increases by 10 percent, the quantity demanded of restaurant meals will increase by 16.1 percent.
• C) restaurant meals are an income elastic normal good.
• D) Both answers B and C are correct.

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