If a Product's Income Elasticity of Demand Is 1

question 128

Multiple Choice

If a product's income elasticity of demand is 1.7,we can conclude that

• A)an increase in income will lead to an increase in demand for the product.
• B)the product is certainly a necessity.
• C)the product is an inferior good.
• D)a decrease in income will lead to an increase in demand for the product.
• E)an increase in income will lead to an increase in quantity demanded of this product by 1.7%.

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Definitions:

Temperament

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Child's Mind

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Miniature Model

A small-scale representation or replica of an object, structure, or scene.

Series of Stages

A sequential progression through a number of phases in a particular developmental process or learning theory.