The Income Elasticity of Demand

question 23

Multiple Choice

The income elasticity of demand

• A) measures the change in income necessary for a given change in quantity demanded.
• B) measures the responsiveness of income to changes in quantity demanded.
• C) measures the responsiveness of quantity demanded to changes in income.
• D) is the ratio of the percentage change in income to the percentage change in quantity demanded.

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Definitions:

Produce Information

The process of generating or creating data, facts, or details that are useful or necessary for a specific purpose or audience.

Accept Data

The process by which data is received and processed by a system or application for further use.

Installing Software

The process of adding new software or programs to a computer system so that they become operational.

Hardware

Physical components and devices that constitute a computer system or network, such as processors, memory devices, and peripherals.