If a Household's Demand for Bread Decreases as Its Income

question 107

Multiple Choice

If a household's demand for bread decreases as its income increases, then its income elasticity of demand for bread is

• A)elastic.
• B)unit elastic.
• C)inelastic.
• D)equal to 0.
• E)negative.

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Definitions:

Pairwise Voting

A voting system where candidates are compared in pairs, and the winner is determined by who wins the most individual comparisons.

Information Search

The process by which individuals seek and gather information about options or solutions before making a decision.

Market Wage

The prevailing rate of pay for specific jobs in the labor market, determined by supply and demand for labor in that field.

Pairwise Voting

An electoral system method where candidates are matched in pairs and the winner of each pair is determined by a vote to choose the most preferred option.