-The increase in the demand for widgets, shown in the figure above, is the result of an increase in people's incomes from $28,500 per year to $31,500 per year. Therefore, the income elasticity of demand for widgets is
A) 0.25.
B) 0.75.
C) 1.33.
D) 4.00.

Question

-The increase in the demand for widgets, shown in the figure above, is the result of an increase in people's incomes from $28,500 per year to $31,500 per year. Therefore, the income elasticity of demand for widgets is
A) 0.25. 
B) 0.75. 
C) 1.33. 
D) 4.00.

Quizplus · Accepted Answer

The Answer of 
-The increase in the demand for widgets, shown in the figure above, is the result of an increase in people's incomes from $28,500 per year to $31,500 per year. Therefore, the income elasticity of demand for widgets is
A) 0.25. 
B) 0.75. 
C) 1.33. 
D) 4.00.

-The Increase in the Demand for Widgets, Shown in the Figure