Income Elasticity of Demand Reflects

question 153

Multiple Choice

Income elasticity of demand reflects

• A) the change in total quantity demanded divided by the total change in income.
• B) the responsiveness of the quantity demanded to changes in income, adjusting its relative price so real income does not change.
• C) the responsiveness of income of producers to a change in quantity sold of the good.
• D) the responsiveness of demand to changes in income.

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Definitions:

Sanctions

Penalties or other means of enforcement used to provide incentives for obedience with the law, or with rules and regulations; can be positive (rewarding) or negative (punishing).

Legislation

Laws or acts passed by governing bodies to regulate, authorize, forbid, or declare something.

Counterculture

A way of life and set of attitudes opposed to or at variance with the prevailing social norm; often associated with movements in the 1960s.

Subculture

A cultural group within a larger culture, often having beliefs or interests at variance with those of the larger culture.