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Answer to Question #40697 in Microeconomics for Alishia
Question #40697
if the income elasticity of demand for furniture is +5, a 5% increase in consumer income,ceteris paribus will
a) decrease the quantity of furniture bought by 25%
b) increase the quantity of furniture bought by 25%
c) increase the quantity of furniture bought by 5%
d) increase the quantity of furniture bought by 1%
a) decrease the quantity of furniture bought by 25%
b) increase the quantity of furniture bought by 25%
c) increase the quantity of furniture bought by 5%
d) increase the quantity of furniture bought by 1%
Expert's answer
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