If the income elasticity of demand for a good is 1.5,

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    quantity demanded will increase by $1,500 for each $1000 increase in income.
     quantity demanded will increase by 7.5% with a 5% increase in income.
     quantity demanded will increase by 1.5% with a 10% increase in income.
     quantity demanded will increase by 1,500 for when income increases from $10,000 to $11,000.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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quantity demanded will increase by 7.5% with a 5% increase in income.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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