The income elasticity is +2 and income increases by 20%. Sales were 5000 units, what will they be now?

Step-by-step explanation:

The income elasticity is +2.5 and income increases by 20%. Sales were 5000 units, what will they be now? If the income elasticity is +2.5, income increases by 20% and sales were 5000 units, then the sales will increase by 20%*2.5 = 50% to 7500 units.

step-by-step explanation:

(s)he  is right it would be 5.5% because it is smaller than 15.5% or anything smaller than 15.5% in general