When Income Increases by 6 Percent,the Demand for Potatoes Decreases

question 66

Multiple Choice

When income increases by 6 percent,the demand for potatoes decreases by 2 percent.The income elasticity of demand for potatoes equals

• A) -2.00.
• B) 3.00.
• C) -3.00.
• D) 0.33.
• E) -0.33.

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Variable Costs

Expenses that change in proportion to the activity or volume of a business.