A Change in the Distribution of Income Which Leaves Total

question 43

Multiple Choice

A change in the distribution of income which leaves total income constant will not shift the market demand curve for a product providing

• A) everyone has an income elasticity of demand of zero for the product.
• B) everyone has the same income elasticity of demand for the product.
• C) individuals have differing income elasticities for the product, but the average income elasticity for income gainers is equal to the average income elasticity for income losers.
• D) any of the above conditions occur.

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Definitions:

General Environment

The broad external conditions that affect organizations, including economic, technological, socio-cultural, and political/legal factors.

Features and Applications

Characteristics or aspects of a product, system, or service and the practical uses or benefits they offer to users.

Environmental Uncertainty

The degree of unpredictability and complexity in an organization's external environment, affecting decision-making and strategy.

Rate of Change

The speed at which a variable changes over a specific period of time in mathematics, finance, and other fields.