Which of the Following Pairs Is the Most Likely to Exhibit

question 16

Multiple Choice

Which of the following pairs is the most likely to exhibit an inverse relationship?

• A) The amount of time you spend studying and your final marks.
• B) Waiter's tips and his/her service.
• C) The annual income and demand for overseas travel.
• D) People's annual income and their expenditure on second-hand clothes.

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Definitions:

Midpoint Method

A technique used in economics to measure the elasticity of demand or supply, which calculates the percentage change between two points by dividing the difference by the average of those points.

Luxury

A luxury item is a good or service that is considered to be of high quality, often resulting in higher prices and perceived as non-essential but desirable if one has the means.

Demand

The consumer's desire and willingness to pay for a good or service, influenced by price, income, tastes, and expectations.

Demand

The volume of goods or services that shoppers are prepared and financially able to buy at several price points within a particular period.