Income Elasticity of Demand Reflects

question 153

Multiple Choice

Income elasticity of demand reflects

• A) the change in total quantity demanded divided by the total change in income.
• B) the responsiveness of the quantity demanded to changes in income, adjusting its relative price so real income does not change.
• C) the responsiveness of income of producers to a change in quantity sold of the good.
• D) the responsiveness of demand to changes in income.

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Definitions:

Fixation Time

Refers to the duration of time an individual's gaze remains on a single location, often used in research to measure attention and interest.

Visual Preference

A term referring to the tendency of individuals to pay more attention or show favoritism towards certain visual stimuli over others.

Stimulus

An environmental condition that elicits a response.

Inborn Responses

Behavioral reactions that are genetically programmed, requiring no prior experience or learning to occur.