The Quantity Demanded of Good a Rises as Income Rises

question 101

Multiple Choice

The quantity demanded of good A rises as income rises. It follows that income elasticity of demand is __________than 0, and good A is a(n) __________ good.

• A)greater; inferior
• B)greater; normal
• C)greater; substitute
• D)greater; complementary
• E)less; normal

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Definitions:

Indirect Exporting

The process of selling products to a foreign market through an intermediary, such as an export trading company or an export management company, rather than directly to the consumer or retailer.

Direct Exporting

A method of entering a foreign market by selling goods directly to customers in another country, bypassing any intermediaries.

Back Translation

The process where a text is translated from one language to another and then translated back to the original language by a different translator to check for accuracy.

Market Entry Strategy

The strategic approach to providing products or services to a new audience and distributing them within that market.