An income elasticity (Ey) of 2.0 indicates that for a _____________ increase in income, ____________ will increase by __________________.
a one percent; quantity supplied; two units
b one unit; quantity supplied; two units
c one percent; quantity demanded; two percent
d one unit; quantity demanded; two units
e ten percent; quantity supplied; two percent
The answer will be C). because:
The income elasticity of demand (YED) measures the responsiveness of a change in the quantity demanded to a ...