Assume That a 4 Percent Increase in Income Results in a 2

question 94

Multiple Choice

Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is

• A)negative, and the good is an inferior good.
• B)negative, and the good is a normal good.
• C)positive, and the good is a normal good.
• D)positive, and the good is an inferior good.

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Definitions:

Federal Medicaid

A United States health program that assists low-income individuals and families by covering medical costs.

Medical Model

A framework that treats mental and physical conditions as diseases to be diagnosed and treated by healthcare professionals.

Hospital Births

Childbirth that takes place in a hospital setting, often involving medical professionals and intervention.

Squatting Position

A posture where the knees are bent and the buttocks rest on or near the heels, often used for labor or low-intensity tasks.