The Difference Between Price Elasticity of Demand and Income Elasticity

question 311

Multiple Choice

The difference between price elasticity of demand and income elasticity of demand is that

• A) income elasticity of demand examines how an individual's income changes when prices change and the price elasticity of demand examines how quantity demand changes when price changes.
• B) income elasticity refers to the movement along the demand curve while price elasticity refers to a horizontal shift of the demand curve.
• C) income elasticity measures the responsiveness of income to changes in supply while price elasticity of demand measures the responsiveness of demand to a change in price.
• D) income elasticity refers to a horizontal shift of the demand curve while price elasticity of demand refers to a movement along the demand curve.

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Definitions:

Morphemes

The smallest units of meaning in a language, which can be a word or a part of a word (such as a prefix).

Metalinguistic Awareness

The ability to reflect on and manipulate the structural features of spoken language, such as understanding that a sentence can be interpreted in different ways.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, suggesting a resemblance.

Overregularization

A linguistic phenomenon in language development where children apply regular grammatical patterns to irregular words, like saying "goed" instead of "went".