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:

Water Table

The level below the Earth's surface at which the ground becomes saturated with water.

Groundwater

Water that occupies the pores and fractures in rock and soil beneath the Earth's surface, an important source of fresh water.

Lake

A large body of water surrounded by land, often formed by tectonic, volcanic, or glacial activity.

Groundwater

The water found under the surface of the Earth, occupying spaces in soil and cracks in geological formations.