If the Income Elasticity of Demand for a Good Is

question 9

Multiple Choice

If the income elasticity of demand for a good is negative

• A) changes in income have no effect on consumption of the good.
• B) a decrease in income causes consumption of the good to fall.
• C) an increase in income causes consumption of the good to fall.
• D) consumption of the good may increase or decrease without any change in income.
• E) and if the good's price falls, income also falls.

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Definitions:

Control

In experimental research, the standard by which test results are compared, often a group that does not receive the experimental treatment.

Within-subject Design

A research design where the same participants are subjected to each condition of an experiment, allowing comparison of their performance across conditions.

Experimental Condition

In research, this is the set of conditions applied to subjects that is manipulated by the researcher to observe its effects compared to a control condition.

Random Assignment

A method of assigning research participants to different groups using randomization, ensuring that each participant has an equal chance of being placed in any group.