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:

Need

A requirement essential for survival or to meet the minimum standards of living.

Scarcity

At the heart of economic challenges lies the conflict between boundless human demands and the scarcity of resources.

Goods

Tangible products that are manufactured, bought, or sold, fulfilling the needs or desires of consumers.

Choices

The act of selecting between two or more possibilities or options in a decision-making process.