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Answer to Question #220969 in Economics for Beauty
Question #220969
The income elasticity of demand for luxury goods is greater than one. This means that the
- A. percentage change in price is greater than the percentage change quantity demanded.
- B. percentage change in quantity demanded is greater than the percentage change in income.
- C. percentage change in quantity demanded is smaller than the percentage change in income.
- D. percentage change in quantity demanded is equal to the percentage change in income.
Expert's answer
B. percentage change in quantity demanded is greater than the percentage change in income.
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