The Income Elasticity of Demand _____

question 102

Multiple Choice

The income elasticity of demand _____.

• A)must be negative because of the law of diminishing marginal utility
• B)could be positive or negative or zero,depending on the nature of the good
• C)must be positive because consumers tend to buy more at higher incomes
• D)is usually zero because "you can only have so much"
• E)can never be zero

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Definitions:

Allowable Quota

A specified limit or restriction, often set by regulatory bodies, on the amount of a particular resource that can be used, caught, or harvested within a given period to ensure sustainability.

Non-targeted Species

Organisms that are unintentionally affected by human activities, such as pesticides or habitat destruction, which can lead to unintended ecological consequences.

Biosphere Reserves

Protected areas designated to promote and demonstrate a balanced relationship between humans and the biosphere.

Marine Habitats

Aquatic environments in the ocean where various types of marine organisms live, feed, and reproduce.