A Good with an Income Elasticity of 2

question 5

Multiple Choice

A good with an income elasticity of 2.3 is:

• A) a luxury.
• B) inferior.
• C) a necessity.
• D) a complement.

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Definitions:

Accommodation

In psychology, the process of modifying cognitive schemas to incorporate new information.

Existing Theories

The body of current hypotheses, ideas, and concepts that explain phenomena in a particular field of study.

Accommodation

In cognitive development, the process of altering one's existing schemas, or ideas, as a result of new information or experiences.

Assimilation

The process by which a person or a group's language and/or culture come to resemble those of another group.