If Sarah's income rises by 20 percent, and, as a result, she purchases 40 percent more designer clothing, her income elasticity for designer clothing is
A) 0.5.
B) 1.0.
C) 2.0.
D) Not enough information is given to answer this question.

Name: If Sarah's income rises by 20 percent, and, as a result, she purchases 40 percent more designer clothing, her income elasticity for designer clothing is A) 0.5. B) 1.0. C) 2.0. D) Not enough information is given to answer this question.
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Question

Quizplus · Accepted Answer

The Answer is C

If Sarah's Income Rises by 20 Percent, And, as a Result