The text shows that income elasticity for books is 1.44. This means that
A) books are income inelastic
B) books are price inelastic
C) there's a 144 percent increase in book sales when income rises 10 percent
D) there's a 44 percent increase in book sales when income rises 10 percent
E) there's a 1.44 percent increase in book sales when income rises 1 percent

Question

Quizplus · Accepted Answer

Income elasticity measures the percentage change in the quantity of a good demanded in response to a 1% change in income. In this case, the income elasticity for books is 1.44, which means that a 1% increase in income will lead to a 1.44% increase in the quantity of books demanded.

The Text Shows That Income Elasticity for Books Is 1