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

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Definitions:

Alternative

A different or substitute option, course of action, or solution that is available or may be considered.

Readers

Individuals who read or interpret written material, such as books, articles, or digital content.

Decide

To make a choice or conclusion from among several options or pieces of information.

Memo

A written message, typically in a business context, used for internal communication among employees or departments.