If Your Income Increases by 20% and as a Result

question 56

Multiple Choice

If your income increases by 20% and as a result your quantity demanded of DVDs increases by 10%, your income elasticity of demand for DVDs is:

• A) 2
• B) 0.5
• C) - 1
• D) 0.1

---

Definitions:

Variables

Represent characteristics or quantities that can change and have different values for different individuals or objects in a study.

Nonlinear Relationship

Relationship between variables not appropriately represented by a straight line.

Faculty Members

Individuals who teach courses or are involved in academic research at a college or university.

Classes

In the context of data, refers to categories or groupings into which data points are sorted; in education, refers to courses of instruction.