Income Elasticity of Demand for Professional Haircuts Is Found to Be

question 97

Multiple Choice

Income elasticity of demand for professional haircuts is found to be 1.7.This service is a

• A) normal good and necessity good.
• B) luxury good but not a normal good.
• C) necessity good but not a normal good.
• D) substitute good.
• E) normal good and a luxury good.

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Definitions:

Finite Population Correction Factor

A factor applied in sampling calculations to adjust for the size of the population when the sample size is a substantial fraction of the total population, to improve the estimation accuracy.

Margin of Error

An indicator of the confidence in the results of a survey or experiment, expressing the amount of potential error in the measurements.

Sample Size

The number of observations or data points collected in a study or experiment.

Finite Population Correction

An adjustment made to sampling formulas to account for the fact that the sample is drawn from a finite population, often resulting in smaller standard errors.