If Sarah's Income Rises by 20 Percent, And, as a Result

question 146

Multiple Choice

If Sarah's income rises by 20 percent, and, as a result, she purchases 40 percent more designer clothing, her income elasticity for designer clothing is

• A) 0.5.
• B) 1.0.
• C) 2.0.
• D) Not enough information is given to answer this question.

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Definitions:

Descriptive Methods

Research methods that involve observing and describing the behavior of a subject without influencing it in any way.

Causal Explanations

Reasoning that identifies causes or reasons for phenomena, often used to understand why something happened.

Experimental Methods

Research methodologies that involve the manipulation of variables to determine cause-and-effect relationships in controlled conditions.

Case Study

A research method involving an up-close, in-depth, and detailed examination of a subject of study (the case), as well as its related contextual conditions.