Scenario: Rookie Chong John Chong Is a Rookie in Global Business, but Wants

Scenario: Rookie Chong
John Chong is a rookie in global business, but wants to sell his product, Zulu doll, in every corner of the world. He wants to examine every potential market but wants to keep the costs low. John has asked you to explain a few things about analyzing international markets.
-The income elasticity coefficient for Zulu doll is 1.2, which means the demand for Zulu doll will ________.

A) increase 1.2 percent for every 1.0 percent increase in income
B) increase 1.0 percent for every 1.2 percent increase in income
C) decrease 1.2 percent for every 1.0 percent increase in income
D) remain stagnant since 1.2 is the neutral point