If the Income Elasticity of Demand for Good Smartphone Apps

question 46

Multiple Choice

If the income elasticity of demand for good smartphone apps is 5 and the percentage change in income is 10 percent,what is the percentage change in the quantity consumed?

• A) -0.5 percent
• B) -5 percent
• C) 50 percent
• D) 0.5 percent
• E) 2 percent

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Definitions:

Situational Behavior

Behavior that is influenced by external conditions or circumstances rather than internal traits or motivations.

Usual Pattern Of Behavior

The regular and typical ways in which an individual acts or reacts in different situations.

Facebook Users

Individuals who have an account on the social media platform Facebook and actively use it for communication, sharing, and interaction.

Introverts

Individuals who prefer solitary activities and get drained by social engagement, often characterized by depth of feeling and thought.