If a product has an income elasticity of demand of -2.5 (minus 2.5), and buyers incomes decrease

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If a product has an income elasticity of demand of -2.5 (minus 2.5), and buyers’ incomes decrease by 50%, then:

purchases of this product will fall by 50%.

purchases of this product will fall by 2.5%.

purchases of this product will increase by 150%.

purchases of this product will fall by 75%.

purchases of this product will increase by 20%.

'purchases of this product will increase by 125%.

Related Book For answer-question

Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

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Posted Date: Feb 11, 2019 10:04 AM

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If a product has an income elasticity of demand of -2.5 (minus 2.5), and buyers incomes decrease

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