If We Observe That When Consumers' Incomes Rise by 10

question 92

True/False

If we observe that when consumers' incomes rise by 10%, the quantity demanded of ice cream increases by 5%, then ice cream is an inferior good.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Obedience

A form of social influence where an individual acts in response to a direct order from another individual, usually an authority figure.

Compliance

The act of conforming to a request or demand, often studied in social psychology as a form of social influence.

Group Polarization

Group polarization occurs when discussions within a group lead to an accentuation of the group's initial inclination, often resulting in more extreme positions.