If the Income Elasticity of Demand for Noodles Is -2

question 38

Multiple Choice

If the income elasticity of demand for noodles is -2 and the percentage change in the quantity consumed is 5 percent,what is the percentage change in income?

• A) 2.5 percent
• B) 10 percent
• C) -2.5 percent
• D) -10 percent
• E) -0.4 percent