If a Good Has an Income Elasticity of Demand Greater

question 42

Multiple Choice

If a good has an income elasticity of demand greater than one,one might classify that good as

• A)a necessity.
• B)a luxury.
• C)unusual.
• D)inelastic.

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Definitions:

Situational Contingencies

Refers to external or internal factors that influence the effectiveness of management strategies and decision-making processes.

Organizational Design

The process of structuring an organization in a way that facilitates achieving its goals effectively and efficiently.

Formal Authority

The right bestowed upon an individual or unit to make decisions, command obedience, and enforce rules within an organization's hierarchy.

Situational Contingencies

External factors or circumstances that influence the outcome of a decision or action and must be considered in planning and execution.