Income Elasticity of Demand Measures How

question 80

Multiple Choice

Income elasticity of demand measures how

• A)the quantity demanded changes as consumer income changes.
• B)consumer purchasing power is affected by a change in the price of a good.
• C)the price of a good is affected when there is a change in consumer income.
• D)many units of a good a consumer can buy given a certain income level.

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Definitions:

Rationalizing

The process of attempting to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.

Underutilizing

Not making the most effective or efficient use of a resource, person, or capability.

Overloading

A situation where an individual or system is given more work or information than can be handled comfortably or efficiently.

Skill Set

A collection of skills and abilities that an individual possesses, which can be applied in various jobs, tasks, or projects.