Question
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Suppose the income elasticity of demand for toys is -2.5. This...
Suppose the income elasticity of demand for toys is -2.5. This means that
a 3 percent increase in income will decrease the purchase of toys by 1.2 percent.
a 3 percent increase in income will decrease the purchase of toys by 7.5 percent.
a 3 percent increase in income will increase the purchase of toys by 7.5 percent.
toys are a normal good.
Answer & Explanation
Solved by verified expertAnswered by Eugene13 on coursehero.com
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