If a Consumer Increases Her Quantity of Ice Cream Consumed

question 21

Multiple Choice

If a consumer increases her quantity of ice cream consumed by 100% when her income rises by 25%, then her income elasticity of demand for ice cream is

• A)8.0.
• B)4.0.
• C).25.
• D).08.

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Definitions:

More Money

A phrase representing the desire or need for increased financial resources or wealth.

Obedience

The act of following orders or commands from those in authority, often studied in psychology.

Authority Figure

An authority figure is a person with recognized power, influence, or expertise in a particular area, often used to guide or govern others.

Zero-sum Game

A situation in which one party's gain is exactly balanced by another party's loss, resulting in a net change of zero.