​If Your Income Goes Up by 2% And,in Response,the Quantity

question 30

Multiple Choice

​If your income goes up by 2% and,in response,the quantity demanded of good x rises by 3%, good x can be considered

• A)​An inferior good
• B)A normal good
• C)A public good
• D)​A private good

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Definitions:

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price during a specific period.

Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied of a good to a change in one of its determinants, like price.

Same Elasticity

A condition where two or more products have identical responsiveness in quantity demanded or supplied when there is a change in price.

Perfectly Elastic Demand

Refers to a market situation where consumers are willing to purchase any quantity of the product at a certain price, but no quantity at any other price.