A 10 Per Cent Increase in Income Has Caused a 5

question 54

Multiple Choice

A 10 per cent increase in income has caused a 5 per cent decrease in the quantity demanded. The income elasticity is

• A) 2.0.
• B) - 2.0.
• C) 0.5.
• D) - 0.5.

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Definitions:

Customized Goods

Products that are tailored to meet the specific requirements or specifications of an individual customer.

Parol Evidence Rule

A legal rule that prevents the introduction of evidence outside the written contract that would alter or contradict its terms.

Integrated Contracts

Legal documents that combine all agreements and terms related to a particular deal or relationship into a single, comprehensive document.

Merger Clause

A provision in a contract stating that the agreement is the complete and final agreement between the parties, superseding all oral or written agreements made prior.