Question regarding income elasticity


Problem: An income elasticity (Ey) of 2.0 indicates that for a _________ increase in income, __________ will increase by ___________.

1. one percent; quantity supplied; two units

2. one unit; quantity supplied; two units

3. one percent; quantity demanded; two percent

4. one unit; quantity demanded; two units

5. ten percent; quantity supplied; two percent

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Microeconomics: Question regarding income elasticity
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