Suppose the income elasticity of demand for toys is +1.2. This...

Question

# Suppose the income elasticity of demand for toys is +1.2. This...

Suppose the income elasticity of demand for toys is +1.2. This means that

Multiple Choice

• a 5 percent increase in income will increase the purchase of toys by 6 percent.
• a 5 percent increase in income will increase the purchase of toys by 4.17 percent.
• a 5 percent increase in income will decrease the purchase of toys by 4.17 percent.
• toys are an inferior good.

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10,000 step-by-step explanations

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## Step-by-step explanation

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sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis.