O b. 40% decrease in quantity demanded

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter3: Demand Analysis
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If the income elasticity of demand for some good
is 4, then a 10% increase in price will lead to a:
a.
0.25% decrease in quantity demanded
b. 40% decrease in quantity demanded
c. 20% increase in quantity demanded
O d. 40% increase in quantity demanded
Transcribed Image Text:If the income elasticity of demand for some good is 4, then a 10% increase in price will lead to a: a. 0.25% decrease in quantity demanded b. 40% decrease in quantity demanded c. 20% increase in quantity demanded O d. 40% increase in quantity demanded
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