Suppose Nicole only consumes books and coffee, and she spends 20% of her income on coffee. We know that Nicole's income elasticity of demand for coffee is 1.2, what's her income elasticity of demand for books? 0 085 0 095 0 1 15 O None of them 0 1.05 Question 2 'transcript Which of the following production functions represent increasing returns to scale? l. =2K+3L KIP + Ll/2]3 min{4K , L} Ill. lv. = 5KL - K2 /2 - L2/2 C) (l) only C) All of them C) (l) and (Ill) C) (II) only C) (II) and (IV) 3.5 pts