If the Income Elasticity of Demand for a Good Is

question 230

Multiple Choice

If the income elasticity of demand for a good is 2,then when income rises 10 percent,the quantity demanded

• A) increases 2 percent.
• B) increases 20 percent.
• C) decreases 2 percent.
• D) decreases 20 percent.
• E) increases 12 percent.

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Definitions:

Organizational Buyers

Those who make purchasing decisions on behalf of a company or organization, often including considerations like bulk buying, contractual negotiations, and supplier relationships.

Nondurable Good

Products that are consumed or are only usable for a short period before they are depleted or become unusable.

Product Development

The comprehensive process of bringing a new product or service to market, from idea generation to commercialization.

Nondurable Good

A product that is consumed or has a lifespan significantly shorter than three years, such as food products, fuel, or cleaning supplies.