Suppose That a 20 Percent Increase in Income Increases the Quantity

question 124

Multiple Choice

Suppose that a 20 percent increase in income increases the quantity of good A demanded from 19,200 to 20,800 units. The income elasticity of demand for good A is

• A)0.05.
• B)0.8.
• C)0.4.
• D)1.2.
• E)2.0.

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Definitions:

Delegatee

An individual or organization that has been delegated authority or tasks by another, known as the delegator.

Obligee

A person to whom another is bound by a promise or other obligation; a promisee.

Antiassignment Clauses

Provisions within contracts that prohibit the transfer of rights or delegation of duties to another party without prior consent.

UCC

Stands for the Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business transactions and agreements in the United States.