The Demand Curve for a Good with an Income Elasticity

question 54

Multiple Choice

The demand curve for a good with an income elasticity of less than one

• A)must be upward sloping.
• B)must be downward sloping.
• C)indicates a normal good.
• D)will be upward sloping only if the substitution effect outweighs the income effect.
• E)will be upward sloping only if the income effect outweighs the substitution effect.

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Definitions:

Internal Locus

The belief that one's actions and decisions are primarily controlled by personal decisions and efforts rather than external factors.

Environmental Forces

External factors that affect an organization's performance and operations, including economic, political, technological, and cultural influences.

Successes And Failures

Refers to the outcomes of actions, initiatives, or projects, indicating whether objectives were met (success) or not (failure).

Trait Approach

A theory in psychology that attributes personality and behavior to consistent patterns of inherent traits or characteristics within an individual.