The Income Elasticity of Demand Is the

question 2

Multiple Choice

The income elasticity of demand is the

• A) absolute change in quantity demanded resulting from a one unit increase in income.
• B) percent change in quantity demanded resulting from the absolute increase in income.
• C) percent change in quantity demanded resulting from a one percent increase in income.
• D) percent change in income resulting from a one percent increase in quantity demanded.
• E) percent change in income resulting from a one percent increase in price.

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Definitions:

Needs

Basic requirements for human survival and psychological well-being, such as food, water, and belonging.

Preference

A predilection or inclination for something over others, often reflecting values, desires, or needs.

Motivation Index

A measure or indicator of an individual's level of motivation.

Activation

The act of making something active or operative, especially within biological or technical systems.