If Income Decreases by 20% And, in Response, the Quantity

question 171

Multiple Choice

If income decreases by 20% and, in response, the quantity of housing demanded decreases by 14%, then the income elasticity of demand for housing is

• A) -1.
• B) -0.7.
• C) 0.7.
• D) 1.43.

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Definitions:

One-sample T Test

A statistical test used to compare the mean of a sample to a known value or theoretical expectation.

Normal Population

A population distribution that follows a normal (bell-shaped) curve, indicating that the mean, median, and mode are equal.

Alternative Hypothesis

In statistical analysis, it suggests that there is a statistically significant relationship between variables, opposing the null hypothesis.

Sample Data

Data collected from a subset of a larger population, used to make inferences or predictions about the population as a whole.