Suppose You Have Surveyed a Few Industries and Obtained Information

question 194

Multiple Choice

Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products.If you expect that the economy is headed for a long recession, you would advise people to look for jobs in an industry with

• A)a high positive income elasticity coefficient such as 5.
• B)a low positive income elasticity coefficient such as 0.8.
• C)a "high" negative income elasticity coefficient such as -4.
• D)a "low" negative income elasticity coefficient such as -0.2.

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Definitions:

Purchases

The act of buying goods or services, an exchange of money for ownership or use.

Private-label Brands

Brands that are owned by retailers or suppliers, not the manufacturers, but are produced by third parties.

Differentiate

To distinguish or create a distinct difference between products, services, or concepts, often to gain a competitive advantage.

Competitors

Other businesses or individuals offering similar products or services in the same market, vying for the same customer base.