Question: Consider the following multiplicative demand function where QD = quantity demanded, P = selling price, and Y = disposable income: The coefficient of Y (

Consider the following multiplicative demand function where QD = quantity demanded, P = selling price, and Y = disposable income:
The coefficient of Y (i.e.,.2) indicates that (all other things being held constant):
a.
for a one percent increase in disposable income, quantity demanded would increase by .2 percent
b.
for a one unit increase in disposable income, quantity demanded would increase by .2 units
c.
for a one percent increase in disposable income quantity demanded would increase by .2 units
d.
for a one unit increase in disposable income, quantity demanded would increase by .2 percent
e.
none of the above

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