Asked on 6 Aug 2018

Use the table below to answer the following question. Table 4 Quantity Demanded Price Income Year (units) (dollars) (dollars) -10000 2007 25,000 14,000 10000 2008 15,000 3 4,000 19 2009 5,000 6,000 2000 5000 38) Consider the information in Table 4. Select the best statement. A) The income elasticity of demand is 3.33. B) The income elasticity of demand is -3.33. C) The income elasticity of demand is -2.5. D) The income elasticity of demand is 2.5. E) We cannot calculate the income elasticity of demand because both income and price are changing at the same time.

Answered on 6 Aug 2018

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