When Income Increases by 1%,the Quantity Demanded of a Good

question 11

Essay

When income increases by 1%,the quantity demanded of a good decreases by 2%.What is the income elasticity of the good? Is the good normal or inferior? Why?

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Definitions:

Represses Hostility

The psychological act of suppressing aggressive feelings or thoughts consciously or unconsciously.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Early Childhood Years

The initial stage of human development, typically referring to the period from birth to eight years old, where foundational physical, cognitive, and emotional growth occurs.

Primacy of Instincts

Suggests that instinctual drives are fundamental in determining human behavior, underscoring the inherent motivations that guide actions.