When Consumers' Incomes Increased 6 Percent, the Quantity of Wine

question 38

Multiple Choice

When consumers' incomes increased 6 percent, the quantity of wine bought increased 12 percent. This result means

• A) wine is a luxury.
• B) the demand for wine is income inelastic.
• C) wine is a necessity.
• D) wine is an inferior good.

---

Definitions:

Pituitary Gland

A small endocrine gland in the brain that produces hormones regulating growth, metabolism, and reproductive functions.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system.

Autonomic Nervous System

The part of the nervous system that controls involuntary body functions, such as heart rate, digestion, and respiratory rate, operating automatically without conscious control.

Endocrine System

A network of glands in the body that produce and release hormones directly into the bloodstream to control many bodily functions, including growth, metabolism, and mood regulation.