The text shows that income elasticity for books is 1.44 . This means that
a. books are income inelastic
b. books are price inelastic
c. there's a 144 percent increase in book sales when income rises 10 percent
d. there's a 44 percent increase in book sales when income rises 10 percent
e. there's a 1.44 percent increase in book sales when income rises 1 percent
E
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In the circular flow model, the factor markets are the markets in which
A) consumption goods and services are bought and sold. B) government goods and services are provided. C) land, labor, capital, and entrepreneurship are bought and sold. D) investment goods and services are bought and sold. E) governments impose all their taxes.
By saving, households
a. are supplying loanable funds b. are demanding loanable funds c. are investing d. are acting as a financial intermediary e. must find a borrower