If Income Increases by 10% And, in Response, the Quantity

question 100

Multiple Choice

If income increases by 10% and, in response, the quantity of housing demanded increases by 7%, then the income elasticity of demand for housing is

• A) -1.
• B) -0.7.
• C) 0.7.
• D) 1.43.

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Definitions:

Generativity

A stage of psychosocial development focusing on caring for others and contributing to society, typically associated with middle adulthood.

Identity Confusion

A developmental stage or crisis characterized by uncertainty about oneself and one’s place in the world.

Initiative

Initiative is the ability to assess and initiate things independently, often to take charge or perform a new action in pursuit of innovation or problem-solving.

Industry

In a psychological context, industry refers to a stage of development where an individual demonstrates a capacity for hard work and the pursuit of productive goals, often associated with Erik Erikson's theory of psychosocial development.