Suppose a Consumer's Income Increases from $30,000 to $36,000

question 111

Multiple Choice

Suppose a consumer's income increases from $30,000 to $36,000.As a result,the consumer increases her purchases of compact disks (CDs) from 25 CDs to 30 CDs.What is the consumer's income elasticity of demand for CDs?

• A)0.5
• B)1.0
• C)1.5
• D)2.0

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Definitions:

Brightness

The attribute of visual perception in accordance with which an area appears to emit more or less light.

Perceptual Constancy

The brain's ability to recognize that an object's characteristics (such as size, color, and shape) remain the same despite changes in the environment or perspective.

Phi Phenomenon

An optical illusion of perceiving continuous motion between separate objects viewed rapidly in succession.

Figure-ground Distinction

The perceptual separation of an object (the figure) from its surroundings (the ground), a fundamental process in visual organization.