If a Person's Income Rises and They Do Not Increase

question 40

Multiple Choice

If a person's income rises and they do not increase their consumption,we can conclude that

• A) the good is not inferior.
• B) their income elasticity of demand is zero.
• C) the good is not normal.
• D) no conclusions can be made without knowing the person's initial income and consumption levels.

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Definitions:

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes.

Psychoanalytic Theorist

A professional in psychology who employs psychoanalytic theories that focus on unconscious processes affecting human behavior.

Franz Mesmer

An 18th-century German physician who developed a theory of animal magnetism and is considered a pioneer in the study of hypnosis.

Unconscious

Pertains to the part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.