If the disposal income of a household increases by 10% and the demand – McqOptions

MCQOPTIONS

1.	If the disposal income of a household increases by 10% and the demand for X commodity increased by 25%. The income elasticity of X is
A.	1.5
B.	-0.5
C.	2.5
D.	-2.5
Answer» D. -2.5

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