When the Consumer Spends a Small Portion of His Income

question 368

Multiple Choice

When the consumer spends a small portion of his income on a good, demand will be

• A) elastic.
• B) unit-elastic.
• C) inelastic.
• D) elastic, unit-elastic or inelastic depending upon supply.

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Definitions:

Demographic Characteristics

The statistical characteristics of human populations, such as age, sex, and income, used especially to identify markets.

Future Annual Earnings

Projected earnings or income of an individual, company, or organization for upcoming years.

Below-average Teacher

An educator whose performance is considered lesser in quality or effectiveness compared to the established norm.

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it drives innovation and efficiency in production processes.