Suppose When the Consumer's Income Rises by 100%, the Consumer's $x$

question 24

Multiple Choice

Suppose when the consumer's income rises by 100%, the consumer's consumption of good $x$ only increases by 1%. We can infer that the consumer's income elasticity for good $x$ is:

• A) \(- 0.01\)
• B) \(- 1\)
• C) \(0.01\)
• D) 1

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Definitions:

Ambiguous Situations

Circumstances characterized by uncertainty, unclear options, or lack of specific information, requiring interpretation or decision-making with limited guidance.

Clear Sense

A thorough understanding or perception of a situation, concept, or task at hand.

Instrumental Values

Beliefs or values that act as methods or tools for achieving desired end states or objectives.

Terminal Values

Fundamental beliefs or ideals that a person or organization considers to be of the utmost importance and that guide behavior and decision-making.