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Multiple Choice Suppose the income elasticity of demand por one good is equal to 1.1, and this good has a 40% share of the budget.

Multiple Choice

Suppose the income elasticity of demand por one good is equal to 1.1, and this good has a 40% share of the budget. What is the income elasticity of demand for all other goods, considered together as a composite commodity?

  1. a.0.833 . . .
  2. b.0.933 . . .
  3. c.1.033 . . .
  4. d.1.333 . . .

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