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:

IGE Score

An indicator used in economics to measure intergenerational mobility, reflecting the extent to which a parent’s income can predict their child’s income in adulthood.

College Instructor

An educator or academic who teaches courses at a college or university level, often focusing on a specific subject area or field of study.

Intergenerational Mobility

The movement or changes in social status and economic position that occur from one generation to the next within a family or community.

Upper Middle Class

A socioeconomic group that is above the middle class, characterized by higher income, education, and professional jobs.