Suppose a consumers income increases from $30,000 to $36,000. As a result, the consumer increases her purchases of compact discs (CDs) from 25 CDs...

28. Suppose a consumers income increases from $30,000 to $36,000. As a result, the consumer increases her purchases of compact discs (CDs) from 25 CDs to 30 CDs. What is the consumers income elasticity of demand for CDs? A) 0.5 c) 1.5 b) 1.0 d) 2.0 29. Coffee and tea have: a) positive income elasticities of demand with respect to each other. B) negative income elasticities of demand with respect to each other. C) a positive cross-price elasticity of demand. D) a negative cross-price elasticity of demand.