For Which Product Is the Income Elasticity of Demand Most

question 123

Multiple Choice

For which product is the income elasticity of demand most likely to be positive?

• A) Retreaded tires
• B) Cabbage
• C) Used clothing
• D) Computers

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Definitions:

Venture Philanthropy

An approach to charitable giving that applies the principles of venture capital financing to philanthropic projects, focusing on accountability, performance measurement, and long-term engagement.

Earned-Income Activities

Activities performed by non-profit organizations or businesses that generate revenue through the sale of goods and services rather than through donations.

Social Entrepreneurs

Individuals who establish enterprises with the goal of solving social problems or effecting social change, using business principles for public good.

Economic Value

The worth of a good or service determined by the benefit it provides weighed against its cost.