For Product X, the Income Elasticity of Demand Is 1

question 44

Multiple Choice

For Product X, the income elasticity of demand is 1.16. Which of the following is therefore definitely TRUE?

• A) Product X is a necessity.
• B) Product X is income elastic.
• C) Product X is a substitute for some other good.
• D) Product X is something that mostly poor people will buy.

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Definitions:

Quality

The degree of excellence or superiority of something, often measured against other similar things.

Open Sentence

In predicate logic, a statement with a free variable.

Variable

1. In symbolic logic, a symbol that stands for some, but any, unnamed individual thing; 2. In statistics, a trait regarded as a generic attribute that can exist in different degrees (values).

Closed Sentence

In predicate logic, a statement in which every variable is bound by a quantifier.