Suppose the Income Elasticity of Demand Is -0

question 127

Multiple Choice

Suppose the income elasticity of demand is -0.5 for good X.This implies that a 5% decrease in income will cause the quantity demanded of good X to

• A)increase by 2.5%,and X is an inferior good.
• B)decrease by 2.5% and X is a normal good.
• C)increase by 10% and X is an inferior good.
• D)decrease by 10% and X is a normal good.

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Definitions:

Attention-Deficit Disorder (ADD)

A neurological disorder characterized by a pattern of inattention and/or impulsivity that interferes with functioning or development.

ADHD

ADHD, Attention-Deficit/Hyperactivity Disorder, is a neurodevelopmental disorder characterized by a pattern of inattention, hyperactivity, and impulsivity that is more frequent and severe than typical developmental levels.

Heuristics

Heuristic techniques that ease the decision-making process by employing simple, efficient rules.

Algorithm

A set of step-by-step procedures or formulas for solving a problem or completing a task, often used in computing and mathematical problem-solving.