If Income Increases by 2

question 513

Multiple Choice

If income increases by 2.0 percent, and quantity demanded of a good increases by 0.2 percent, the income elasticity for the good is

• A) 0.22.
• B) 0.002.
• C) 0.10.
• D) 1.00.

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Definitions:

Parental Environment

The external conditions and stimuli influenced by parents that contribute to the development and behavior of their offspring.

Rare

Not common or frequent; unusual.

Expansive

Characterized by a wide scope or the ability to increase in size, volume, or quantity.

Experimental

Pertaining to a methodical plan, test, or trial conducted under controlled conditions to discover, verify, or establish facts or principles.