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Gary Consumes 10,000 Kilowatt-Hours of Electricity When His Income Is

Question 155

Multiple Choice

Gary consumes 10,000 kilowatt-hours of electricity when his income is $500.When his income increases to $1,000,his consumption of electricity increases to 18,000 kilowatt-hours.What is Gary's income elasticity of demand for electricity?


A) 0.5
B) 0.8
C) 1.8
D) 2

Correct Answer:

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