Last Year,Carolyn Bought 6 Pairs of Earrings When Her Income

question 190

Multiple Choice

Last year,Carolyn bought 6 pairs of earrings when her income was $40,000.This year,her income is $52,000,and she purchased 7 pairs of earrings.Holding other factors constant,it follows that Carolyn's income elasticity of demand is about

• A) 0.59, and Carolyn regards earrings as an inferior good.
• B) 0.59, and Carolyn regards earrings as a normal good.
• C) 1.7, and Carolyn regards earrings as an inferior good.
• D) 1.7, and Carolyn regards earrings as a normal good.

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Definitions:

Cause Marketing

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An approach to marketing that seeks to balance company profits, customer satisfaction, and societal well-being by focusing on socially responsible and ethical practices.