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N5 An individual's preferences can be represented by U(X1, X2) = x, + In(X2). What is the individual's income elasticity of demand for Good 1

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N5

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An individual's preferences can be represented by U(X1, X2) = x, + In(X2). What is the individual's income elasticity of demand for Good 1 (Ex, () if / = $40, p, = $4, and p2 = $1? a. 9 b. 10/9 c. 1/9 d. 9/10 e. 0

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