Question
Suppose the income elasticity of demand for toys is -2.5. This means that a 3 percent increase in income will decrease the purchase of toys
Suppose the income elasticity of demand for toys is -2.5. This means that
a 3 percent increase in income will decrease the purchase of toys by 1.2 percent.
a 3 percent increase in income will decrease the purchase of toys by 7.5 percent.
a 3 percent increase in income will increase the purchase of toys by 7.5 percent. toys are a normal good.
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Microeconomics
Authors: Michael Parkin
11th edition
133019942, 978-0133020250, 133020258, 978-0133019940
