Suppose That the Quantity Demanded of a Product Falls by 9

question 240

Multiple Choice

Suppose that the quantity demanded of a product falls by 9% as incomes fall by 3%. What is the income elasticity for this good?

• A) -3.00
• B) -0.33
• C) 0.33
• D) 3.00

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Definitions:

Method

A systematic way of doing something, often involving a detailed plan or procedure.

Caterpillars

The larval stage of butterflies and moths, known for their voracious appetite before transitioning into pupae.

Sufficient Condition

A condition or set of conditions that, if met, guarantees that a certain state or event will occur, though it may not be necessary for the occurrence.

Causal Factor

A condition or event that directly influences the occurrence of another event or condition, serving as its cause.