Calculate the Income Elasticity If an 8 Percent Increase in Income

question 73

Multiple Choice

Calculate the income elasticity if an 8 percent increase in income leads to a 4 percent increase in quantity demanded for organic produce.

• A)-0.66
• B)0.5
• C)1.5
• D)2

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Definitions:

Regression

A statistical method used for estimating the relationships among variables, often used to predict the value of a dependent variable based on the value of one or more independent variables.

Commitment

The psychological state or quality of being dedicated to a cause, activity, or job; wholehearted devotion.

Development Levels

Stages that represent the degree of competence and commitment of individuals or groups in a learning or operational context.

Flexibility

The ability to adapt to new, different, or changing requirements and conditions effectively.