If Income Elasticity of Demand Is 2

question 198

Multiple Choice

If income elasticity of demand is 2.12, it means that quantity demanded will __________ by 2.12 percent for every __________ percent __________ in income.

• A)rise; 2.12; fall
• B)rise; 1.0; rise
• C)fall; 1.0; rise
• D)fall; 2.12; fall
• E)none of the above

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Definitions:

Design Principle

Fundamental guideline or standard that directs the design of objects, systems, or environments.

Self-controlled

The ability of an individual to regulate their emotions, thoughts, and behaviors in pursuit of long-term goals.

Conscientiousness

A personality trait characterized by thoroughness, reliability, and a strong sense of responsibility.

Factor Analysis

Analyzing correlations among items to see which form related clusters.