Median Household Income Is $50,000 Per Year

question 70

Multiple Choice

Median household income is $50,000 per year.The typical household spends about $125 per year on milk,which has an income elasticity of about 0.07.From this information,we can conclude that

• A) milk is a luxury.
• B) milk is a Giffen good.
• C) the income effect from a change in the price of milk is very large.
• D) the income effect from a change in the price of milk is very small.

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Definitions:

Saccadic Eye Movements

Rapid, jerky movements of the eyes used in scanning the visual environment, shifting gaze quickly from one point to another.

Relearn

To relearn is to learn information or skills that one had learned previously but has forgotten or needs to recall.

Implicit Memory

Memory that is not consciously recalled but influences behaviors or thought processes.

Prospective Memory

The aspect of memory that involves remembering to perform a planned action or recall a planned intention at some future point in time.