Nancy's Income Has Just Risen from $950 Per Week to $1050

question 127

Multiple Choice

Nancy's income has just risen from $950 per week to $1050 per week.As a result,she decides to double the number of movies she attends each week.Nancy's demand for movies is

• A)price elastic.
• B)income elastic.
• C)price inelastic.
• D)income inelastic.
• E)positively cross inelastic.

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Definitions:

Consumer Demand Curve

A graphical representation showing the quantity of a product that consumers are willing and able to purchase at various price levels.

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Income Effect

The change in an individual's consumption resulting from a change in their real income, due to price changes or other factors.

Law of Demand

indicates the inverse relationship between the price of a good or service and the quantity demanded, with demand typically decreasing as prices increase, all else being constant.