If a Decrease in Income Results in a Decrease in the Quantity

question 182

Multiple Choice

If a decrease in income results in a decrease in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.

• A) a normal good; positive
• B) a normal good, negative
• C) an inferior good; positive
• D) an inferior good; negative

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Definitions:

Schachter-Singer

Two psychologists who proposed a theory of emotion, suggesting that physiological arousal is interpreted in the context of environmental cues to produce emotional experience.

Two-Factor Theory

A theory proposed by Herzberg that explains job satisfaction and motivation by categorizing workplace factors into hygiene factors and motivators.

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.

Bisexual

Pertaining to a sexual orientation that involves attraction to both males and females.