The Income Elasticity of Demand

question 23

Multiple Choice

The income elasticity of demand

• A) measures the change in income necessary for a given change in quantity demanded.
• B) measures the responsiveness of income to changes in quantity demanded.
• C) measures the responsiveness of quantity demanded to changes in income.
• D) is the ratio of the percentage change in income to the percentage change in quantity demanded.

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Definitions:

Interchangeable

Objects or concepts that can be equally substituted for one another without changing the outcome or function.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is persistently elevated, posing significant risk factors for cardiovascular disease.

Prescribed Treatment Plan

A healthcare professional’s detailed strategy for treating a patient's illness or condition, including medications, therapies, and lifestyle changes.

Outcome

The result or effect of an action, situation, or condition; used to assess the success or impact of interventions or activities.