Suppose When the Consumer's Income Rises by 100%,the Consumer's Consumption

question 24

Multiple Choice

Suppose when the consumer's income rises by 100%,the consumer's consumption of good falls by 1%.We can infer that the consumer's income elasticity for good is

• A) -1
• B) -0.01
• C) 1
• D) 0.01

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Definitions:

Factorial Research Design

An experimental design technique that involves studying the effects of two or more factors by changing them simultaneously to observe their interactions on dependent variables.

Independent Variables

Factors that are manipulated or varied in an experiment to observe their effect on dependent variables.

Combinations

A selection of items from a larger set where the order of selection does not matter.

Interaction Effect

An effect in statistical analysis indicating that the influence of one variable on the dependent variable differs across levels of another variable, demonstrating that the effect is not simply additive.