Brenna's income elasticity of demand for football tickets is 1.5.All else equal,if her income increases by 18 percent,how many more football tickets will she buy
A)18 percent more football tickets
B)27 percent more football tickets
C)46 percent more football tickets
D)150 percent more football tickets

Question

Quizplus · Accepted Answer

An income elasticity of demand of 1.5 means that a one percent increase in income leads to a 1.5 percent increase in the quantity of football tickets demanded. Therefore, an 18 percent increase in income leads to a 27 percent increase in the quantity of football tickets demanded (1.5 x 18 = 27).

Brenna's Income Elasticity of Demand for Football Tickets Is 1