When Income Increases from $30,000 a Year to $40,000 a Year

question 44

Multiple Choice

When income increases from $30,000 a year to $40,000 a year, the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year. For Sara, the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good.

• A) 1/3; a normal
• B) -4.5; an inferior
• C) 3; a normal
• D) 1/3; an inferior
• E) 4.5 a normal

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Definitions:

Individual Behavior

Actions, mannerisms, and reactions of a single person, influenced by their environment, personality, emotions, and values.

Performance

is the act of carrying out or accomplishing an action, task, or function effectively.

Person-job Matching

The process of aligning an individual's skills, experiences, and attributes with the requirements of a job to ensure optimal performance and satisfaction.

Inventory Control

The supervision over the supply, storage, distribution, and recording of materials to maintain quantities adequate for current needs without excessive oversupply or loss.