CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Income elasticity is +2 and income increases by 20%. Sales were 5000 units. What will they be now?
A. 3000
B. 5500
C. 7000
Explanation: A percentage increase in income will lead to an increase in quantity demanded that is twice as great; this means sales will increase by 40%, to 7000 units.

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