If the Income Elasticity of Demand for a Good Is

question 88

Multiple Choice

If the income elasticity of demand for a good is - 3.4,a 25% increase in income results in

• A)a 4% increase in quantity demanded.
• B)a 0.85% increase in quantity demanded.
• C)an 8.5% decrease in quantity demanded.
• D)an 85% decrease in the quantity demanded.
• E)There is not enough information to answer this question.

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Definitions:

Agreeableness

A personality trait characterized by attributes such as trust, altruism, kindness, affection, and other prosocial behaviors.

Good-natured

Having or characterized by a pleasant, agreeable, and cooperative disposition.

Trusting

The act of believing in the reliability, truth, ability, or strength of someone or something without requiring constant proof or evidence.

Extraversion

A personality trait characterized by outgoing, talkative, and socially confident behaviors.