If Vicky's Income Increases by 8% and She Increases Her

question 132

Multiple Choice

If Vicky's income increases by 8% and she increases her consumption of music downloads by 4%,then her income elasticity of demand for music downloads is

• A)4.0.
• B)-0.5.
• C)-2.0.
• D)2.0.
• E)0.5.

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Definitions:

Explanandum

An phenomenon or event that is to be explained, often the subject of scientific or philosophical inquiry.

Hypothesis

A hypothesis is a suggestion or theory made with restricted proof, serving as an initial step for more in-depth research.

Uninformative

Lacking useful, meaningful, or relevant information or details, often leading to a failure to enhance understanding or knowledge.

Explanation

A statement or account that makes something clear or understandable.