If a 6 Percent Increase in Income Results in a 10

question 68

Multiple Choice

If a 6 percent increase in income results in a 10 percent increase in the quantity demanded of pizza,then the income elasticity of demand for pizza is

• A)negative and therefore pizza is an normal good.
• B)negative and therefore pizza is a inferior good.
• C)positive and therefore pizza is an inferior good.
• D)positive and therefore pizza is a normal good.

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Definitions:

Resource Allocation

The process of distributing available resources among various projects or business units.

Dental Services

Professional care related to the maintenance and treatment of oral health delivered by licensed practitioners.

Economic Profit

The dissimilarity between total sales revenue and comprehensive spending, including both clear-cut and notional costs.

Price Competitively

Setting a price point for goods or services with the intention of attracting customers by being more favorable or advantageous than those of competitors.