Question
. The income elasticity of demand for jelly beans is 3. What is the correct interpretation of this number? a.a 3% increase in income results
. The income elasticity of demand for jelly beans is 3. What is the correct interpretation of this number?
a.a 3% increase in income results in a 1% increase in the demand for jelly beans.
b.a $1 increase in income increases the demand for jelly beans by $3.
c.the demand for jelly beans is elastic.
d.a 1% increase in income results in a 3% increase in the demand for jelly beans.
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
