Suppose the income elasticity of demand for toys is -2.5. This means that Multiple Choice a 3 percent increase in income will decrease the purchase of toys by 7.5 percent. a 3 percent increase in income will decrease the purchase of toys by 1.2 percent. a 3 percent increase in income will increase the purchase of toys by 7.5 percent. toys are a normal good.
Suppose the income elasticity of demand for toys is -2.5. This means that Multiple Choice a 3 percent increase in income will decrease the purchase of toys by 7.5 percent. a 3 percent increase in income will decrease the purchase of toys by 1.2 percent. a 3 percent increase in income will increase the purchase of toys by 7.5 percent. toys are a normal good.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose the income elasticity of demand for toys is -2.5. This means that
Multiple Choice
a 3 percent increase in income will decrease the purchase of toys by 7.5 percent.
a 3 percent increase in income will decrease the purchase of toys by 1.2 percent.
a 3 percent increase in income will increase the purchase of toys by 7.5 percent.
toys are a normal good.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc87ddbd0-2e96-4ff2-b892-078e8a47d877%2Fab75191a-5874-4e4a-91c3-6de9b9120645%2Fail5nfe_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose the income elasticity of demand for toys is -2.5. This means that
Multiple Choice
a 3 percent increase in income will decrease the purchase of toys by 7.5 percent.
a 3 percent increase in income will decrease the purchase of toys by 1.2 percent.
a 3 percent increase in income will increase the purchase of toys by 7.5 percent.
toys are a normal good.
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