Suppose National Income Is Rising Steadily at 2% Per Year

question 140

Multiple Choice

Suppose national income is rising steadily at 2% per year over a 5-year period.Over the same time period,suppose quantity demanded for iPods and iPhones increases at 5% per year,but no other relevant variables are changing.We can conclude that the income elasticity for these products is ________ and that these products are ________ goods.

• A)0.4; inferior
• B)4.0; normal
• C)2.5; luxury
• D)10.0; necessities
• E)4.0; necessities

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Definitions:

Multi-Contextual

Pertaining to or involving multiple contexts or environments, emphasizing the variation of experiences across different settings.

Population Density

A measurement of population per unit area or unit volume; it is a way of quantifying how crowded a population is.

Chronosystem

A term from Bronfenbrenner's ecological systems theory referring to the chronological nature of life events and how they interact and influence individual development over time.

Historical Context

The circumstances and conditions that surround and influence the significance of events, movements, or individual lives in history.