Stating That Income Elasticity of Demand for Potatoes Equals 0

question 107

Multiple Choice

Stating that income elasticity of demand for potatoes equals 0.15 is equivalent to stating that if income

• A)decreases by 10 percent,potato purchases decrease by 1.5 percent.
• B)increases by 10 percent,potato purchases increase by 15 percent.
• C)decreases by 1.5 percent,potato purchases decrease by 10 percent.
• D)increases by 15 percent,potato purchases decrease by 10 percent.
• E)none of the above

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Definitions:

Luminous

Emitting or reflecting light, brightly shining, often used to describe objects that can glow in the dark.

Law of Continuity

A principle in Gestalt psychology stating that elements that appear to follow in the same pathway tend to be grouped together perceptually.

Unity

The state of being united or joined as a whole, often used to describe a sense of harmony and togetherness among group members.

Vestibular System

A complex set of sensory structures in the inner ear that helps maintain balance and spatial orientation.