Last Year,Jim Bought 8 Tickets to Sporting Events When His

question 62

Multiple Choice

Last year,Jim bought 8 tickets to sporting events when his income was $30,000.This year,his income is $33,000,and he purchased 10 tickets to sporting events.Holding other factors constant and using the midpoint method,it follows that Jim's income elasticity of demand is about

• A)0.43,and Jim regards tickets to sporting events as inferior goods.
• B)0.43,and Jim regards tickets to sporting events as normal goods.
• C)2.33,and Jim regards tickets to sporting events as inferior goods.
• D)2.33,and Jim regards tickets to sporting events as normal goods.

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Definitions:

Extrinsic Motivation

A form of motivation driven by external rewards, such as money, fame, grades, and praise.

Intrinsic Motivation

The drive to act based on internal rewards, such as personal satisfaction or the pleasure of doing something.

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.

Drive Theory

A psychological theory that posits that behavior is motivated by the desire to meet basic physiological needs.