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:

Bandwagon Effect

A psychological phenomenon where people do something primarily because other people are doing it, regardless of their own beliefs.

Front-Runner

A candidate or competitor who is leading in a race or competition, especially in politics.

Media Ownership

The control of media outlets by private or corporate entities, which can influence the diversity of information, opinions, and entertainment available to the public.

Privately Owned

Ownership by non-governmental individuals or corporations, as opposed to being owned by the state or public.