Assume That Demand for a Service Depends Upon Price and Income,where

question 26

Multiple Choice

Assume that demand for a service depends upon price and income,where price elasticity of demand [EP] = -0.6 and income elasticity [EY] = 1.2.If price falls by 4% and income rises by 2%,the quantity demanded of the service will _____.

• A)not be affected as the change in price will cancel the change in income
• B)increase by 6%
• C)increase by 4.8%
• D)decrease by 9.6%
• E)decrease by 2.4%

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Definitions:

Hazards Exposure

The potential for employees to encounter dangerous conditions or substances in the workplace that can cause injury or illness.

Records Withholding

The act of keeping certain documents or information private and not disclosing them to unauthorized parties.

Pregnant Woman

A female in the state of carrying a developing embryo or fetus within her body.

Employer's Refusal

Situations where an employer declines certain requests or demands from employees or unions, which may lead to disputes.