If a 10 Per Cent Increase in Income Results in an 8

question 122

Multiple Choice

If a 10 per cent increase in income results in an 8 per cent increase in the quantity demanded of a good, the income elasticity of demand equals _______ and the good is _______ good.

• A) 1.2; a normal
• B) - 1.2; an inferior
• C) 0.80; a normal
• D) 0.80; an inferior

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Definitions:

Appropriate Intervention

An action or support mechanism that is suitable and effective for addressing a particular problem or condition.

Cognitive Coping

The use of conscious, rational thought to solve problems, reduce stress, and manage adverse or challenging situations.

Objective Action

Actions that are based on objective evidence or facts rather than personal feelings, interpretations, or prejudice.

Direct Action

Tactical measures or activities undertaken to achieve a specific goal, often used in political, environmental, or social movements.