435,473 views
38 votes
38 votes
Suppose income increases by 10 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) decreases by 16 percent. The income elasticity of demand for this brand of car is places and include a minus sign if appropriate.) (Enter your response rounded to two decimal 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 necessity. If so, then the income elasticity of demand for this truck is:________

A. positive.
B. zero.
C. negative.
D. less than 1 but greater than 0.
E. greater than 1.

User Nathan DeWitt
by
2.5k points

1 Answer

17 votes
17 votes
C is the answer becaause if you do that then you get it
User Bosniamaj
by
2.9k points