If an Increase in Income by 15 Per Cent Results

question 7

Multiple Choice

If an increase in income by 15 per cent results in a 45 per cent increase in the quantity demanded, what is the income elastic of the good?

• A)3/2
• B)3
• C)1/2
• D)1/3
• E)None of the above

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Definitions:

Customer

Someone who pays for a product or service.

Geoffrey Moore

An American organizational theorist, management consultant, and author known for his work on the technology adoption life cycle and marketing strategies for high-tech products.

Chasm

A significant gap or barrier that must be overcome, often used metaphorically in business and technology adoption contexts.

Technology Adoption Life Cycle

A model in sociology which explains how a new product or innovation is adopted or accepted, based on the demographic and psychological traits of specific groups of adopters.