If the Income Elasticity of Demand for Store Brand Macaroni

question 126

Multiple Choice

If the income elasticity of demand for store brand macaroni and cheese is −3.00, this means that

• A)store brand macaroni and cheese is a substitute for name brand macaroni and cheese.
• B)store brand macaroni and cheese is a normal good.
• C)store brand macaroni and cheese is an inferior good.
• D)more store brand macaroni and cheese will be purchased when its price falls.

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Definitions:

Ingroup Bias

The tendency to favor members of one's own group over those in other groups.

Social Comparison

The process of comparing oneself to others in order to evaluate one's own abilities, status, or situation.

Cautious

Describes a behavior characterized by careful foresight to avoid potential risks or dangers.

Extraversion

A personality trait characterized by outgoingness, high levels of sociability, and a preference for social interaction.