Howard Buys 5 Suits a Year When He Earns $70,000

question 95

Multiple Choice

Howard buys 5 suits a year when he earns $70,000.When his income increases to $200,000,he buys 15 suits a year.From the midpoint method,his income elasticity of demand for suits is

• A) 1.04.
• B) 0.96.
• C) -1.04.
• D) -0.96.
• E) 0.08.

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