Table 5-1
​
​ ​
-Refer to Table 5-1

question 114

Multiple Choice

Table 5-1
​
​
$$\begin{array} { | c | c | } \hline \text { Good } & \begin{array} { c } \text { Price Elasticity } \\\text { of Demand }\end{array} \\\hline \mathrm { A }& 1.9 \\\hline \mathrm { B } & 0.8 \\\hline\end{array}$$ ​
-Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-1?

• A)A is a luxury and B is a necessity.
• B)A is a good after an increase in income and B is that same good after a decrease in income.
• C)A has fewer substitutes than B.
• D)A is a good immediately after a price increase and B is that same good three years after the price increase.

---

Definitions:

Population B

A term that could specify a second or particular subgroup within a larger population for study or analysis.

Income Distribution

Describes how a nation's total earnings are spread among its population, affecting economic inequality.

Household Income

The combined gross income of all members of a household, serving as a measure for various economic indicators and eligibility for financial assistance programs.

Annual Income

Annual income refers to the total earnings received by an individual, household, or entity within a year from all sources, including wages, investments, and other forms of compensation.