You are told that the income elasticity for DVDs is + 1.5. This means that
(A)a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good. (B)a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are an inferior good. (C)a 10 percent increase in income produces a 15 percent decrease in consumption of DVDs. DVDs are an inferior good. (D)a 10 percent increase in the price of DVDs produces a 15 percent decrease in consumption of DVDs. DVDs are a price elastic good.
A