If the income elasticity of demand for good smartphone apps is 5 and the percentage change in income is 10 percent,what is the percentage change in the quantity consumed?
A) -0.5 percent
B) -5 percent
C) 50 percent
D) 0.5 percent
E) 2 percent

Question

Quizplus · Accepted Answer

The percentage change in quantity consumed is calculated by multiplying the income elasticity of demand (5) by the percentage change in income (10%), resulting in a 50% change.

If the Income Elasticity of Demand for Good Smartphone Apps