Question 13 (1 point)

A firm sells "Big Boy Toys" (bass boats, ATV's, etc...) and overall faces an estimated income elasticity of demand of 2.5 for its products. If a recession lowers buyers' income by 5%, then the firms units sold will fall by how much if no changes are made in its pricing?

Question 13 options:

a)

-5.0%

b)

-2.5%

c)

-12.5%

d)

-7.5%