7) If the income elasticity of demand for books is 1,5, a 10 % increase in the income of consumers will cause a __ and books are _ a) 15% increase in the demand for books, normal goods b) 15 % decrease in the demand for books, superior goods c) 15% increase in the demand for books, inferior goods b) 15 % decrease in the demand for books, inferior good

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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7) If the income elasticity of demand for books is 1,5, a 10 % increase in the income of consumers will cause a __ and books are _
a) 15% increase in the demand for books, normal goods
b) 15 % decrease in the demand for books, superior goods
c) 15% increase in the demand for books, inferior goods
b) 15 % decrease in the demand for books, inferior good
[14:16]
If the elasticity of demand for umbrellas is -1.6 and the price of umbrellas increases by 10 %, the expenditures on umbrellas will
a) decrease by 6 %
b) decrease b 10 %
c) increase by 10 %
d) increase by 6 %

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