Scenario: Chong's analysis of international markets John Chong is an inexperienced entrepreneur in global business....
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Scenario: Chong's analysis of international markets John Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets. The income-elasticity coefficient for Zulu doll is 1.2, which means the demand for Zulu doll will ________.
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increase 1.2 percent for every 1.0 percent increase in income
decrease 1.0 percent for every 1.2 percent increase in income
decrease 1.2 percent for every 1.0 percent increase in income
remain stagnant since 1.2 is the equilibrium value
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