If a 6 Percent Increase in Income Leads to a 4

question 51

Multiple Choice

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books, the income elasticity of demand is

• A)-0.67.
• B)0.67.
• C)1.5.
• D)2.

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Definitions:

Sensory Modalities

Different forms of sensory perceptions, such as sight, sound, touch, taste, and smell, through which humans and animals perceive the environment.

Visual

Relating to seeing or sight, involving the use of vision.

Auditory

Relating to the sense of hearing or the system and structures involved in hearing.

Heuristic

A problem-solving approach using practical methods or various shortcuts to produce solutions that may not be perfect but are sufficient for the immediate goals.