Average income increases from $10,000 / month to $11,000 / month. Quantity demanded per month increases from 5,000 to 6,000 units. Which of the following is correct?Question 8 options: Demand is price inelastic. The good in question is inferior. Income elasticity is -2. The good in question is normal and has a positive income elasticity of demand. Please give correct and incorrect explanationNote:- Please don't simply copy and paste content from other AI tools or bots, or else I may have to downvote your actions.Do not provide the handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.

Income elasticity of demand measures how the quantity demanded of a good responds to a change in…

Answered: Average income increases from $10,000 /…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Average income increases from $10,000 / month to $11,000 / month. Quantity demanded per month increases from 5,000 to 6,000 units. Which of the following is correct?

Question 8 options:

	Demand is price inelastic.
	The good in question is inferior.
	Income elasticity is -2.
	The good in question is normal and has a positive income elasticity of demand.

Please give correct and incorrect explanation

Note:- Please don't simply copy and paste content from other AI tools or bots, or else I may have to downvote your actions.

Do not provide the handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.

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