Demand Is Income Elastic If

question 66

Multiple Choice

Demand is income elastic if

• A) a large percentage increase in income results in a small percentage increase in quantity demanded.
• B) a small percentage increase in income results in a large percentage increase in quantity demanded.
• C) an increase in income does not affect the quantity demanded.
• D) the good in question has close substitutes.

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Definitions:

Operationalized

The process of defining a concept or variable in measurable terms to facilitate its identification and study within research.

Construct

An abstract idea, concept, or theory that is created for the purpose of scientific research.

Measurable

Capable of being quantified or expressed as a quantity or in numerical terms.

Item Response Theory (IRT)

A theory and related statistical models that examine the relationship between the latent traits of individuals and their performance on test items.