If the Income Elasticity for Lobster Is 0

question 46

Multiple Choice

If the income elasticity for lobster is 0.6, a 25 percent increase in income will lead to a:

• A) 6 percent drop in demand for lobster.
• B) 2.4 percent increase in demand for lobster.
• C) 15 percent increase in demand for lobster.
• D) 42 percent increase in demand for lobster.

---

Definitions:

Brand Equity

Added value that a respected and successful name gives to a product.

Financial Gain

The increase in monetary resources, often resulting from business activities, investments, or other financial transactions.

Added Value

The increase in worth of a product or service as a result of a particular process.

Product Development

The process of conceptualizing, designing, building, and bringing a new product to the market.