IDNLearn.com makes it easy to find the right answers to your questions. Our community provides accurate and timely answers to help you understand and solve any issue.
When the above situation occurs, we can say that the income elasticity of demand for automobiles is 1.2.
This can be found by the formula:
= Change in quantity demanded of automobiles / Change in income
Solving gives:
= 30% / 25%
= 1.2
In conclusion, the income elasticity here would be 1.2.
Find out more on income elasticity of demand at https://brainly.com/question/3980051.