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Income elasticity of demand

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If a good has an income elasticity of demand equal to 2.7, how will the quantity demanded change when consumer income rises by 4 percent? (Please explain to me how you solve this, thank you!)

A. Quantity demanded will rise by 10.8 percent

B. Quantity demanded will rise by 2.7 percent

C. Quantity demanded will rise by 5.4 percent

D. Quantity demanded will fall by 8.1 percent

Reference no: EM131075946

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