If Income Elasticity of Demand Is 2

question 163

Multiple Choice

If income elasticity of demand is 2.12, it means that quantity demanded will __________ by 2.12 percent for every __________ percent __________ in income.

• A)rise; 2.12; fall
• B)rise; 1.0; rise
• C)fall; 1.0; rise
• D)fall; 2.12; fall

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