If a 5% Increase in Income Increases Quantity Demanded by 4

question 130

Multiple Choice

If a 5% increase in income increases quantity demanded by 4%, the income elasticity of demand is:

• A) 1.25.
• B) 0.80.
• C) 2.0.
• D) 0.02.

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Definitions:

Core Beliefs

Fundamental, deeply held assumptions or convictions that shape how an individual interprets the world and themselves.

Automatic Thoughts

These are spontaneous, often involuntary thoughts that occur in response to specific situations, frequently negative or self-critical, and influence one's emotional state.

Alcohol Use Disorder

A health disorder defined by the lack of control over alcohol consumption, despite negative impacts on social relationships, work, or physical well-being.

Trigger

A stimulus that evokes a reaction or response, often used in the context of substance abuse and mental health to describe an event or situation that leads to a relapse or worsening of symptoms.