If a product has an income elasticity of demand of -2.5 (minus 2.5), and buyers' incomes decrease by50%, then:O purchases of this product will fall by 50%.O purchases of this product will fall by 2.5%.O purchases of this product will increase by 125%.O purchases of this product will increase by 150%.O purchases of this product will increase by 20%.

In economics, the theory of income elasticity of demand quantifies how shifts in customers' income…

If a product has an income elasticity of demand of -2.5 (minus 2.5), and buyers' incomes decrease by 50%, then: purchases of this product will fall by 50%. purchases of this product will fall by 2.5%. purchases of this product will increase by 125%. purchases of this product will increase by 150%. O purchases of this product will increase by 20%.

If a product has an income elasticity of demand of -2.5 (minus 2.5), and buyers' incomes decrease by 50%, then: purchases of this product will fall by 50%. purchases of this product will fall by 2.5%. purchases of this product will increase by 125%. purchases of this product will increase by 150%. O purchases of this product will increase by 20%.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 13SQP

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Similar questions

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