The income elasticity of demand for restaurant meals is 1.61. So……. ?
Select ONE answer:
- if income increases by 16.1 percent, the quantity demanded of restaurant meals will
increase by 10 percent. - if income increases by 10 percent, the quantity demanded of restaurant meals will increase
by 16.1 percent. - restaurant meals are an income elastic normal good.
- Both answers B and C are correct.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This is multiple choice question is suitable for Economics KS5 classes.
The answer is 4
This work is licensed under a Creative Commons Attribution 4.0 International License.
