Nancy's income has just risen from $950 per week to $1050 per week.As a result,she decides to double the number of movies she attends each week.Nancy's demand for movies is
A)price elastic.
B)income elastic.
C)price inelastic.
D)income inelastic.
E)positively cross inelastic.

Question

Quizplus · Accepted Answer

Nancy's demand for movies is income elastic because her consumption of movies increases significantly (doubles) in response to an increase in her income.

Nancy's Income Has Just Risen from $950 Per Week to $1050