Answer the next question based on information in the following table.ProductPercentage Change in IncomePercentage Change in Quantity DemandedW?1?1X+6+10Y?1+1Z+4+8Which product has the largest income elasticity of demand?

All changes in nominal GDP are due to price changes

a. True b. False Indicate whether the statement is true or false

In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by:

A. an increase in the cost of making donuts. B. an increase in the price of coffee. C. consumers expecting donut prices to fall. D. a change in buyer tastes.