When Income Increases from $30,000 a Year to $40,000 a Year,the

question 89

Multiple Choice

When income increases from $30,000 a year to $40,000 a year,the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year.For Sara,the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good.

• A) 3; a normal
• B) 4.5 a normal
• C) 1/3; an inferior
• D) -4.5; an inferior
• E) 1/3; a normal

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Definitions:

BCG Matrix

A strategic business tool developed by the Boston Consulting Group that classifies business units or products into four categories (Question Marks, Stars, Cash Cows, Dogs) based on their market growth rate and market share.

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