Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that: Group of answer choices -every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education. -every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education. -a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased. -a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased.
Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that: Group of answer choices -every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education. -every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education. -a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased. -a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that:
Group of answer choices
-every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education.
-every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education.
-a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased.
-a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased.
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