Answered: Revenue increases from 10 to 12 and the…

Revenue increases from 10 to 12 and the income elasticity of demand is - 0.5. The quantity demanded was 500 units. What will it be now? O a. 450 units O b. 490 units O c. 550 units O d. 500 units

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...

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Question

Revenue increases from 10 to 12 and the income
elasticity of demand is - 0.5. The quantity demanded
was 500 units. What will it be now?
O a. 450 units
O b. 490 units
O c. 550 units
O d. 500 units

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