If the Income-Elasticity Coefficient for Coffee Is 0

question 143

Multiple Choice

If the income-elasticity coefficient for coffee is 0.5, the demand for coffee will ________.

• A) decrease 0.5 percent for every 1.0 percent increase in income
• B) increase 1.0 percent for every 5.0 percent increase in income
• C) increase 0.5 percent for every 1.0 percent increase in income
• D) not move related to income because it is at the neutral level

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