Question

Suppose the income elasticity for iPads is equal to 2 then this means that:_______

a. if income increases by 2%, then the demand for iPads will decrease by 1%.

b. if income increases by $1 then the demand for iPads will increase by 2%.

c. if income increases by 1%, then the demand for iPads will increase by 2%.

d. if income increases by 1%, then the demand for iPads will decrease by 2%.

Answer 1

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