Suppose That the Economy Is Growing and That Incomes Increase

question 17

Multiple Choice

Suppose that the economy is growing and that incomes increase by 10%. The demand for hamburger decreases by 5%. What is the income elasticity for hamburger?

• A) 2.0
• B) 2.2
• C) 0.5
• D) -0.5

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Definitions:

Gestalt Therapy

Form of directive insight therapy in which the therapist helps clients accept all parts of their feelings and subjective experiences, using leading questions and planned experiences such as role playing.

Directive

An instruction, command, or principle intended to guide actions or behavior.

Psychopharmacology

The use of drugs to control or relieve the symptoms of psychological disorders.

Anxiety Disorder

A group of mental disorders characterized by significant feelings of anxiety and fear, affecting daily living.