When Fred's Income Was $100 Per Week, 10 Units of Good

question 309

Multiple Choice

When Fred's income was $100 per week, 10 units of good X were demanded. Now his income is $150 per week and 12 units of good X are demanded. Using the percentage change formula, the income elasticity of demand for good X equals ________.

• A) 0.45
• B) 0.40
• C) 2.20
• D) 2.50

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