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If the Quantity Demanded for a Good Rises as Income

question 18

Multiple Choice

If the quantity demanded for a good rises as income rises then the income elasticity of demand for this good is ________ than 0, and the good is ________ good.


Definitions:

Probability

Probability is a measure of the likelihood of an event to occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Certain Income

A guaranteed or fixed amount of money received, not subject to variations or uncertainties.

Expected Utility

A concept in economics that represents the total utility an individual anticipates or expects to receive from a set of outcompeting choices under conditions of uncertainty.

Uncertainty

Refers to situations where the outcomes or future events are unknown, often affecting decision-making in economics and finance.

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