Income Elasticity of Demand Measures

question 114

Multiple Choice

Income elasticity of demand measures:

• A) how much quantity demanded changes in response to a price change.
• B) how much a consumer can buy at given income levels.
• C) how much consumer purchasing power is affected when prices change.
• D) how demand for a good changes in response to changes in income.

---

Definitions:

Mastery

Achieving a high level of proficiency or expertise in a particular skill or body of knowledge.

Proximal

Physically or metaphorically close; pertaining to the immediate surroundings or situation.

Informal Learning

Learning that occurs in everyday life, often without structured curriculum and not in a formal educational setting, such as learning through experience or social interactions.

Time Constraints

The limited windows of time available for completing tasks or objectives, often influencing the efficiency and effectiveness of operations or projects.