Calculate the Income Elasticity If an 8 Percent Increase in Income

question 73

Multiple Choice

Calculate the income elasticity if an 8 percent increase in income leads to a 4 percent increase in quantity demanded for organic produce.

• A)-0.66
• B)0.5
• C)1.5
• D)2

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Definitions:

TPS

An organizational Transaction Processing System operates as an information system that engages in the collection, storage, alteration, and retrieval of transaction activities.

Inventory Management

The practice of ordering, storing, using, and selling a company's inventory, which includes both raw materials and finished goods.

Quickbooks

An accounting software package developed by Intuit, designed for small and medium-sized businesses, offering on-premises accounting applications as well as cloud-based versions.

Interorganizational

Pertaining to the relationships or interactions between different organizations.