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Suppose a consumer's income increases from $60000 to $7200 As a result the consumer increases her purchases of compact disks

Suppose a consumer's income increases from $60,000 to $72,000. As a result, the consumer increases her purchases of compact disks (CDs) from 50 CDs to 60 CDs. What is the consumer's income elasticity of demand for CDs (arc or midpoint formula)? Please explain the steps. A) 2.0 B) 1.5 C) 0.5 D) 1.0

Apr 21 2020 View more View Less

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