Use the following for questions 163-168.
Exhibit: Johnson's Income and Expenditures
Quantity Purchased per Month

-(Exhibit: Johnson's Income and Expenditures) Johnson's income elasticity of demand for movies is:
A) infinite.
B) 1.
C) 0.
D) -1.

Question

Use the following for questions 163-168.
Exhibit: Johnson's Income and Expenditures
Quantity Purchased per Month
 
-(Exhibit: Johnson's Income and Expenditures) Johnson's income elasticity of demand for movies is:
A) infinite. 
B) 1. 
C) 0. 
D) -1.

Quizplus · Accepted Answer

Johnson's income elasticity of demand for movies is 0 because his spending on movies does not change as his income changes.

Use the Following for Questions 163-168