If Income Increases by 2

question 513

Multiple Choice

If income increases by 2.0 percent, and quantity demanded of a good increases by 0.2 percent, the income elasticity for the good is

• A) 0.22.
• B) 0.002.
• C) 0.10.
• D) 1.00.

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Definitions:

Social Skills

The abilities required to communicate, interact, and form relationships with others effectively and appropriately.

Intellectual Skills

The cognitive abilities that involve reasoning, problem-solving, and the capacity to understand complex ideas.

Wording Effects

The influence that the choice of words has on the recipient's reaction and understanding.

Welfare

Government programs designed to assist individuals and families in need to ensure a minimum standard of living and financial security.