If the Income-Elasticity Coefficient for Coffee Is 0

question 74

Multiple Choice

If the income-elasticity coefficient for coffee is 0.5,the demand for coffee will ________.

• A) decrease 0.5 percent for every 1.0 percent increase in income
• B) increase 1.0 percent for every 5.0 percent increase in income
• C) increase 0.5 percent for every 1.0 percent increase in income
• D) decrease 0.5 percent for every 0.5 percent increase in income

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Definitions:

Subordinate

An individual or entity that is lower in rank, position, or importance relative to another.

Psychological Reactance

A behavioral response to restrictions on personal freedoms, often resulting in a desire to reclaim or reassert those freedoms.

Providing Alternatives

Offering different options or choices as solutions to a particular problem or issue.

Limiting Freedom

The act of restricting individual choices, actions, or liberty.