If Your Income Increased by 5% and the Quantity of Jeans

question 20

Multiple Choice

If your income increased by 5% and the quantity of jeans you demanded decreased by 4%, your income elasticity of demand for jeans is:

• A) 1.25 and jeans are a normal good
• B) 0.8 and jeans are a normal good
• C) - 0.8 and jeans are an inferior good
• D) - 1.25 and jeans are an inferior good

---

Definitions:

Nerve Fibers

Long, slender projections of nerve cells, or neurons, that transmit electrical impulses throughout the body to communicate signals.

Pictorial Stage

A phase in children's drawing development where they begin to create images that resemble the real world, often occurring around ages 4 to 9.

Drawings

Visual representations made on a surface, such as paper, with instruments like pencils, pens, or brushes, often used as a form of expression or communication.

Recognizable Objects

Items or shapes that can easily be identified based on their appearance and characteristics, significant for cognitive development.