Suppose the income elasticity of demand for toys is +2.00. This means that:
A. a 10 percent increase in income will increase the purchase of toys by 20 percent.
B. a 10 percent increase in income will increase the purchase of toys by 2 percent.
C. a 10 percent increase in income will decrease the purchase of toys by 2 percent.
D. toys are an inferior good.
Answer: A
Economics
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