If a 6 Percent Increase in Income Leads to a 4

question 51

Multiple Choice

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books, the income elasticity of demand is

• A)-0.67.
• B)0.67.
• C)1.5.
• D)2.

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Definitions:

Bilateral Contract

A type of contract that involves mutual obligations, where each party to the contract is both a promisor and promisee.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract, allowing the other party to seek legal remedies.

Valid Offer

A proposal made by one party to another with terms clear enough to create a legally binding contract if accepted.