If Average Consumer Incomes Increase Proportionately Faster Than the Demand

question 92

Multiple Choice

If average consumer incomes increase proportionately faster than the demand for a product,then the income elasticity of demand for the product is:

• A) zero.
• B) greater than zero but less than 1.
• C) greater than 1.
• D) equal to 1.

---

Definitions:

Assembly Center

A facility or area designated for the assembly of products or components, often part of a manufacturing or distribution process.

Production Levels

The quantity of goods or services that a company can produce within a specified period of time.

Determinant

A numerical value derived from the components of a square matrix, capturing specific characteristics of the matrix.

Triangle

A polygon with three edges and three vertices.