If the Income Elasticity of a Good Is Positive but Less

question 24

Multiple Choice

If the income elasticity of a good is positive but less than 1,as income increases

• A) demand for the good will decrease.
• B) demand for the good will increase, but less than proportionately to the income increase.
• C) demand for the good will increase, but more than proportionately to the income increase.
• D) demand will not change.

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Definitions:

Federal Court Jurisdiction

The authority granted to federal courts to hear and decide cases based on subject matter or parties involved.

Commercial Activity

Business operations or actions undertaken for the purpose of generating profit.

Expropriation

The act of a government taking privately owned property to be used for public purposes, usually with compensation to the owner.

Public Purpose

Concise definition: The rationale behind legislative actions or government spending which must benefit the public at large, rather than specific individuals or groups.