If a Consumer Doubles Her Quantity of Ice Cream Consumed

question 32

Multiple Choice

If a consumer doubles her quantity of ice cream consumed when her income rises by 25%,then her income elasticity of demand for ice cream is

• A) 8.0.
• B) 4.0.
• C) .25.
• D) .08.

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Definitions:

Extrinsic Value

The worth attributed to an object, entity, or condition based on its utility or impact on others, rather than its inherent nature.

Utilitarian Value

The usefulness or practical benefit of something, especially regarding the greatest happiness or benefit to the greatest number of people.

Vulnerable Habitats

Ecosystems or environments that are at risk of degradation, damage, or destruction due to human activities, climate change, or natural phenomena, requiring special attention for conservation.

Endangered

Refers to species that are at risk of extinction due to a significant decline in population or habitat.