Suppose That the Income Elasticity of Demand for Fresh Vegetables

question 107

Multiple Choice

Suppose that the income elasticity of demand for fresh vegetables is 0.26.If buyers' incomes rise by 10 percent,then

• A)the demand curve for fresh vegetables will shift to the left
• B)the quantity of fresh vegetables demanded will rise by 2.6 percent
• C)the quantity of fresh vegetables demanded will rise by 12.6 percent
• D)there will be a movement down and to the right on the demand curve for fresh vegetables
• E)there will be a movement up and to the left along the demand curve for fresh vegetables

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