If a 10 Percent Increase in Income Induced a Group

question 104

Multiple Choice

If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of potatoes by 5 percent, for these consumers,

• A) the income elasticity of potatoes equals approximately 1.05.
• B) the income elasticity of potatoes is 0.5.
• C) potatoes are a luxury good.
• D) potatoes are an inferior good.

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Definitions:

Biological Mother

A woman who has given birth to a child, contributing genetically to the offspring's makeup.

Stepfamilies

Families formed when at least one partner in a marriage or committed relationship brings children from a previous union.

Nuclear Families

consist of two parents and their biological or adopted children, living together as a single unit and considered a traditional family structure.

Stress and Conflict

Refers to the emotional and mental strain caused by discord, disagreements, or challenges in interpersonal relationships or life circumstances.