If the income elasticity of demand for a good is 2, then when income rises 10 percent, the quantity demanded
A) increases 2 percent.
B) increases 20 percent.
C) decreases 2 percent.
D) decreases 20 percent.
E) increases 12 percent.
B
You might also like to view...
What is the difference between the SS Error and SS Total?
Who was the effectively in charge of the Fed during the early 1930s?
A) Secretary of Treasury B) Head of the Federal Reserve bank of New York C) Comptroller of the Currency D) no one
Those closest to fomenting a real revolution during the early years of the Great Depression were
(a) bankers. (b) farmers. (c) industrial workers. (d) the middle class.
Refer to the graph shown of a monopolistically competitive firm. If the firm maximizes profit, it will:
A. produce 5,000 dresses per year. B. produce 8,000 dresses per year. C. produce 12,000 dresses per year. D. go out of business because it cannot earn a profit.