Increase in consumer income-ceteris paribus

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Reference no: EM131244540

Assume that a 10% increase in consumer income, ceteris paribus, caused a 4% decrease in the purchase of bus tickets. Based on this information:

a. the price elasticity of demand for bus tickets equals 0.40

b. the price elasticity of demand for bus tickets equals -2.50

c. the income elasticity of demand for bus tickets equals -0.40

d. the income elasticity of demand for bus tickets equals -2.50

d. the income elasticity of demand for bus tickets equals +0.40

Reference no: EM131244540

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