Suppose the income elasticity of demand for toys is +2.00. This means that: a 10 percent increase in income will increase the purchase of toys by 20 percent. O a 10 percent increase in income will increase the purchase of toys by 2 percent. O a 10 percent increase in income will decrease the purchase of toys by 2 percent. O toys are an inferior good.

Suppose the income elasticity of demand for toys is +2.00. This means that: a 10 percent increase in income will increase the purchase of toys by 20 percent. O a 10 percent increase in income will increase the purchase of toys by 2 percent. O a 10 percent increase in income will decrease the purchase of toys by 2 percent. O toys are an inferior good.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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