Business, 20.02.2020 20:40 johndiaz26

Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) increases by 49 percent

The income elasticity of demand for this brand of car is (Enter your response rounded to two decimal places and include a minus sign if appropriate.)

This particular brand of automobile is a(n) good

In another example, suppose market research shows that a particular brand of truck is a normal good and a luxury.

If so, then the income elasticity of demand for this truck is:
1. Less than 1 but greater than 0
2. Negative
3. Greater than 1
4. Positive
5. Zero

Answers: 2

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Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of autom...