If Your Income Was to Increase from $20,000 to $30,000

question 62

Multiple Choice

If your income was to increase from $20,000 to $30,000 and the number of home -delivered pizzas you bought per year increased from 22 to 40, then your income elasticity of demand for home-delivered pizza equals

• A) 1.45.
• B) 0.58.
• C) 2.86.
• D) 0.69.
• E) 0.40.

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Definitions:

Demand Constraint

A demand constraint is a limitation that affects the quantity of a product that can be sold or demanded in the market, potentially due to factors like production capacity or regulatory issues.

Distribution Center

A specialized facility that enables the storage, handling, and distribution of goods to retailers or directly to customers.

San Antonio

A major city in south-central Texas with a rich colonial heritage, known for the Alamo and the River Walk.

Television Sets

Electronic devices designed to receive television signals for visual and auditory display of content.