If a 5 Percent Increase in Consumer Incomes Leads to a 10

question 14

Multiple Choice

If a 5 percent increase in consumer incomes leads to a 10 percent increase in the quantity demanded for a good, the good is a(n) _________ good with an income elasticity of________ .

• A)normal; 2.0
• B)inferior; - 0.50
• C)inferior ; 2.0
• D)normal; 0.50

---

Definitions:

Archaean Eon

The period of Earth’s history from the formation of the crust approximately 4 billion years ago, until 2.5 billion years ago; life originated during the Archaean.

Oceanic Trenches

Deep, narrow depressions in the ocean floor, formed by the subduction of one tectonic plate under another.

Polar Regions

Areas surrounding the Earth's geographical poles, characterized by extreme cold and seasonal variations in daylight.

Age of Mammals

A term often used to refer to the Cenozoic Era, characterized by the rise and dominance of mammals after the extinction of dinosaurs.