5.2 Using disposable personal income (peoples income after paying taxes) as their measure of income, General Motors
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5.2 Using disposable personal income (people’s income after paying taxes) as their measure of income, General Motors’ economists estimate that the income elasticity of demand for its cars is 1.9. The economists forecast that disposable personal income will grow 3.8 percent next year.
What will be the effect on the demand for General Motors’ cars?
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