If a Household Increases Its Consumption of a Good by 10

question 137

Multiple Choice

If a household increases its consumption of a good by 10 percent when its income increases by 1 percent, then the good is

• A)an inferior good.
• B)a luxury.
• C)a necessity.
• D)both an inferior good and a necessity.
• E)an unclassified good.

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Definitions:

Collectivist Society

A society that prioritizes the group's needs over the individual's, often emphasizing strong social ties, cooperation, and group harmony.

Social Learning Theory

A theory that suggests people learn new behaviors through observational learning, or by watching others and imitating their actions.

Gender

The psychological aspects of being male or female.

Behavioral

Relating to or concerned with the actions or activities of living beings, especially in terms of observable and measurable responses to external stimuli.