Sam's income elasticity of demand for Product A is 1.15, while his income elasticity of demand for Product B is –1.15 . Given these values, what will happen to Sam's consumption of Products A and B if his income increases by 12 percent?
a. Sam's consumption of Product A will fall, while his consumption of Product B will rise

b. Sam's consumption of Product A will rise, while his consumption of Product B will fall.
c. Sam's consumption of Product A will fall, while his consumption of Product B will remain the same.
d. Sam's consumption of Product A will remain the same, while his consumption of Product B will fall.

b

Economics

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