The Income Elasticity of Demand Is a Measure of

question 75

Multiple Choice

The income elasticity of demand is a measure of

• A) the extent to which the supply of a good changes when the demand changes as a result of a change in income.
• B) the extent to which the demand for a good changes when income changes.
• C) how responsive suppliers are to changes in the price of a product.
• D) how responsive consumers are to changes in the price of a product.
• E) how demand for a product changes when the price of a substitute or complement product changes.

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Definitions:

Groupthink

A mental tendency in which the quest for consensus within a group making decisions surpasses an objective evaluation of other options.

Mood Contagion

The phenomenon where one person's mood or emotional state triggers similar moods or emotions in others around them.

Social Loafing

The phenomenon of individuals making less effort to achieve a goal when they work in a group than when they work alone.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, politics, or being consistent with the accepted standards in a society.