Income Elasticity Measures

question 255

Multiple Choice

Income elasticity measures

• A) how a good's quantity demanded responds to change in the goods price.
• B) how a good's quantity demanded responds to change in the price of another good.
• C) how a good's quantity demanded responds to change in buyers' incomes.
• D) how a good's quantity demanded responds to producers' incomes.

---

Definitions:

Hedge Risk

A strategy or financial instrument used to offset potential losses or gains that may be incurred by a companion investment.

Option Positions

Refers to the holding of options contracts, including call and put options, as part of an investment strategy or portfolio.

Stock Price

The cost of purchasing a share of a company, determined by the supply and demand in the stock market.

Forward Contract

A financial contract between two parties to buy or sell an asset at a predetermined future date and price.