Suppose National Income Is Rising Steadily at 2% Per Year

question 140

Multiple Choice

Suppose national income is rising steadily at 2% per year over a 5-year period.Over the same time period,suppose quantity demanded for iPods and iPhones increases at 5% per year,but no other relevant variables are changing.We can conclude that the income elasticity for these products is ________ and that these products are ________ goods.

• A)0.4; inferior
• B)4.0; normal
• C)2.5; luxury
• D)10.0; necessities
• E)4.0; necessities

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Definitions:

Traditional Social

Pertains to societies or aspects of society that adhere to long-established customs, beliefs, and behaviors.

Drug Policy

The laws and regulations enacted by governments concerning the manufacture, distribution, sale, and use of drugs within a society.

Cost Effective

An approach or method that achieves the desired outcome without excessive expenditure, ensuring optimal use of resources.

Drug Legalization

The process of removing legal prohibitions against drugs, allowing them to be legally produced, sold, and used under regulated conditions.