If the Income Elasticity of Demand for a Service Is

question 89

Multiple Choice

If the income elasticity of demand for a service is 0.6, then a 5 percent increase in income will generate a __________ in quantity demanded

• A)3 percent decrease
• B)3 percent increase
• C)8.33 percent decrease
• D)8.33 percent increase
• E)0.12 percent decrease

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Definitions:

Satisfying

Referring to something that fulfills expectations, needs, or desires adequately.

Semi-Conscious

A state of awareness that is between full consciousness and unconsciousness, where an individual may only partially perceive stimuli.

Metalinguistic Awareness

Metalinguistic Awareness is the ability to think about and reflect upon the nature and functions of language itself.

Sarcasm

The use of irony to mock or convey contempt.