If the Income Elasticity of Demand for a Good Is

question 48

Multiple Choice

If the income elasticity of demand for a good is 1.25,a 10% increase in income results in

• A)a 12.5% increase in the quantity demanded.
• B)a 12.5% decrease in the quantity demanded.
• C)a 125% increase in the quantity demanded.
• D)a decrease in quantity demanded.
• E)There is not enough information to answer this question.

---

Definitions:

Unrelated Items

Items or elements that do not share a common connection, association, or relevance to each other in a given context.

Hippocampus

An essential part of the brain associated with memory formation, especially long-term memory, and spatial navigation.

Procedural Memories

Memories of how to perform tasks or actions, such as riding a bike, that are often retained and executed without conscious thought.

Declarative Memory

A type of long-term memory that involves the recollection of facts, information, and events.