If a Product's Income Elasticity Is - 3

question 62

Multiple Choice

If a product's income elasticity is - 3.4, then we can conclude that

• A) an increase in income will lead to an increase in demand for the product.
• B) the product is a normal good.
• C) the product is certainly a necessity.
• D) the product has a rising income- consumption curve.
• E) a decrease in income will lead to an increase in demand for the product.

---

Definitions:

Rounded Cobbles

Rocks that have been rounded and smoothed over time by the continuous action of water, commonly found in riverbeds and beaches.

Environments

Surroundings or conditions in which an organism, community, or object exists, including natural, social, and built factors.

Sand

Coarse particles of rock and mineral, typically smaller than gravel and larger than silt, often found on beaches, deserts, and riverbeds.

Deep-Sea Floor

The bottom of the ocean at great depths, characterized by cold temperatures, high pressure, and darkness.