Suppose the Consumer's Income Elasticity for Good $x$ Is -010 When Monthly Income Is $1,000, and the Consumer's Income

question 81

Multiple Choice

Suppose the consumer's income elasticity for good $x$ is -0.10 when monthly income is $1,000, and the consumer's income elasticity for good $x$ is 0.10 when monthly income is $2,000. From this information we can infer that

• A)good \(x\) is an inferior good for low levels of income and a superior good for high levels of income.
• B)good \(x\) is a normal good for low levels of income and an inferior good for high levels of income.
• C)good \(x\) in an inferior good for low levels of income and a normal good for high levels of income.
• D)good \(x\) is a Giffen good.

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Definitions:

Forgetting Notes

The process or act of being unable to recall information or details that were previously written down to remember.

Storage Failure

A phenomenon in cognitive psychology where information fails to be retained in memory over time, leading to forgetting or inability to recall.

Recognition Tests

Assessment tools used to measure a person's ability to recognize previously encountered material or stimuli.

Retrieval Cues

Stimuli or signals that can trigger the recall of memories, helping the brain to access specific information stored in the memory.