If Sarah's Income Rises by 20 Percent, And, as a Result

question 146

Multiple Choice

If Sarah's income rises by 20 percent, and, as a result, she purchases 40 percent more designer clothing, her income elasticity for designer clothing is

• A) 0.5.
• B) 1.0.
• C) 2.0.
• D) Not enough information is given to answer this question.

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Definitions:

Newly Industrialized Countries

Countries that are in transition from being primarily agricultural to primarily industrial economies, characterized by rapid economic growth.

Heo and Hahm

Not a widely recognized key term within a general academic or professional context. It might refer to specific individuals or studies in a specialized field but lacks recognition as a stand-alone key term.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

International Monetary Fund

An international organization created to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty.