A Good Has an Income Elasticity of +0

question 84

Multiple Choice

A good has an income elasticity of +0.5.An increase in income from $15,000 to $25,000 will lead to a

• A)2.5 percent increase in the quantity demanded of the good.
• B)5 percent increase in the quantity demanded of the good.
• C)5 percent decrease in the quantity demanded of the good.
• D)25 percent decrease in the quantity demanded of the good.
• E)25 percent increase in the quantity demanded of the good.

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Definitions:

Stopwatch Study

A time measurement technique used to observe and record the time taken to perform a specific task, often for the purpose of improving operational efficiency.

Adequate Sample

is a sample size considered sufficient for statistical analysis, ensuring the results are reliable and reflective of the whole population.

Work Measurement

The process of determining the time required by a qualified worker to carry out a defined task under specified conditions.

Statistical Tool

Methodologies and techniques used for analyzing data to identify patterns, trends, and relationships among variables.