The Income Elasticity of Chocolate Is 0

question 72

Multiple Choice

The income elasticity of chocolate is 0.8. A 2% increase in income will cause:

• A) a 0.8% increase in the quantity demanded of chocolate
• B) a 2% decrease in the quantity demanded of chocolate
• C) a 2.5% increase in the quantity demanded of chocolate
• D) a 1.6% increase in the quantity demanded of chocolate

---

Definitions:

Displacement

In psychology, a defense mechanism where negative emotions are transferred from the original source to a safer or less threatening target.

Severe Anxiety

A debilitating mental health condition characterized by extreme fear, worry, and unease that significantly impacts daily functioning.

Positive Self-talk

The practice of making affirming and encouraging statements to oneself to boost confidence and well-being.

Diazepam (Valium)

A prescription medication belonging to the benzodiazepine class, commonly used to treat anxiety, seizures, and muscle spasms.