Joe Receives a 20 Per Cent Increase in His Income

question 51

Multiple Choice

Joe receives a 20 per cent increase in his income from his part-time job and as a consequence decreases his consumption of two-minute noodles by 10 per cent. Hence to Joe, two-minute noodles are

• A) a substitute good with a cross elasticity of 0.5.
• B) an inferior good with an income elasticity of -0.5.
• C) an inferior good with an income elasticity of -2.0.
• D) a good with a price elasticity of supply of -0.5.
• E) a normal good with a price elasticity of demand of 0.5.

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Definitions:

Add New Action

A command or option in software that allows users to insert or create a new operation or task within the current workflow or project.

Macro Tools Design Tab

A feature in some software applications that provides users with tools to create, manage, and edit macros, which are sets of automated commands.

If Statement

A conditional programming construct used to perform different actions based on whether a specified condition is true or false.

Else If

A conditional statement in programming that specifies a new condition to test if the previous condition(s) is false.