S. consumers, the income elasticity of demand for fruit juice is 1.1. If the omy enters a recession next year and consumer income declines by 2.5%, what expected change in the quantity of fruit juice demanded next year? +2.75% -2.75% +27.5% -27.5%

S. consumers, the income elasticity of demand for fruit juice is 1.1. If the omy enters a recession next year and consumer income declines by 2.5%, what expected change in the quantity of fruit juice demanded next year? +2.75% -2.75% +27.5% -27.5%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the
economy enters a recession next year and consumer income declines by 2.5%, what
is the expected change in the quantity of fruit juice demanded next year?
O A) +2.75%
O B) -2.75%
O C) +27.5%
O D) -27.5%

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