A Consumer Spends All of Her Income on Only One

question 67

Essay

A consumer spends all of her income on only one good.What is the income elasticity of demand for this good?
What is the own price elasticity of demand for this good?

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Definitions:

Contingency Management

A behavioral therapy technique that modifies behavior by changing the consequences of that behavior, often through rewards or punishments aimed at increasing or decreasing certain behaviors.

Stimulus Control

A behavioral intervention technique to limit exposure to cues that trigger undesirable behaviors.

Biofeedback

A technique that teaches individuals to control physiological processes such as heart rate, muscle tension, and brainwave patterns, through real-time feedback from monitoring devices.

Efficacy

The ability of a product or treatment to produce a desired effect under ideal and controlled conditions.