Suppose the quantity demand of a product increases from 32 units to 40 units and income increases from €20,000 to €22,000. What is the Income Elasticity of Demand?

a) 0.4.
b) -0.4.
c) - 2.5.
d) 2.5.


Answer: d) 2.5.

Economics

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For an imaginary economy, the consumer price index was 80 in 2014, 100 in 2015, and 140 in 2016 . Which of the following statements is correct?

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Economics