Post a New Question

economics

posted by .

suppose the income elasticity of demand for toys is +2.00. this means that a. a 10 percent increase in income will increase the purchase of toys by 20 percent b. a 10 percent increase in income will increase the purchase of toys by 2 percent c. a 10 percent increase in income will decrease the purchase of toys by 2 percent d. toys are an inferior good.

  • economics -

    Income (I) elasticity is (%change Q)/(% change I).
    So, you have (%change Q)/(10%) = 2.0 So, (%change Q) must be......

  • economics -

    a

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question