A 10 Percent Increase in Income Increases the Quantity of Orange

question 212

Multiple Choice

A 10 percent increase in income increases the quantity of orange juice demanded from 19,200 to 20,800 gallons. The income elasticity of demand for orange juice is

• A) 0.5.
• B) 0.8.
• C) 1.0.
• D) 1.2.