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Jerry Spends His Entire Income on Two Goods,Bran and Tea

Question 72

Multiple Choice

Jerry spends his entire income on two goods,Bran and Tea.Every month he spends half of his income on each of these goods.Jerry's income elasticity of demand for Bran is .75.What is the income elasticity of demand for Tea?


A) 1.25
B) .75
C) 1
D) Unknown with the information provided

Correct Answer:

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