Assume That a 4 Percent Decrease in Income Results in a 6

question 211

Multiple Choice

Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good.The income elasticity of demand for the good is

• A)negative,and the good is an inferior good.
• B)negative,and the good is a normal good.
• C)positive,and the good is an inferior good.
• D)positive,and the good is a normal good.

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Definitions:

Object Permanence

The realization that objects still exist even when they are not perceivable through sight, hearing, touch, smell, or any sensory means.

Egocentrism

A cognitive bias that causes individuals to interpret the world from their own perspective, often failing to understand that others may have different points of view.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Goal-Directed Behavior

Behavior motivated towards achieving a specific outcome or goal.