If the Income Elasticity of Demand Is 0

question 171

Multiple Choice

If the income elasticity of demand is 0.5,the good will be a(n) ________ good.

• A) complement
• B) substitute
• C) necessity
• D) inferior
• E) luxury

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Definitions:

Cognitive Development

The process by which individuals perceive, think, and gain understanding of their world through the interaction and influence of genetic and learned factors.

Information Processing Perspective

A cognitive psychology approach that likens the human mind to a computer, focusing on how people process, store, encode, and retrieve information.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, specifically his theory of cognitive development.

Knowledge Base

A comprehensive collection of information, facts, and data that can be used for reference or to support decision-making and problem-solving.