Suppose the Income Elasticity of Demand for Used Jet Skis

question 47

Multiple Choice

Suppose the income elasticity of demand for used jet skis is 3.5.If the level of income decreases by 1 percent,the number of used jet skis sold will,ceteris paribus,

• A)Rise by 0.29 percent.
• B)Rise by 3.5 percent.
• C)Fall by 0.29 percent.
• D)Fall by 3.5 percent.

---

Definitions:

Coercive Power

The capacity to force someone to perform a task or behave in a certain way through threats, punishment, or negative consequences.

Reward Power

The capability of an individual to offer incentives to others for performing certain actions or behaviors.

Legitimate Power

A form of authority that derives from an individual's role or position within an organizational hierarchy, giving them the right to make decisions, command, or influence others.

Concern For Task

The focus and prioritization on completing tasks and achieving goals efficiently and effectively within an organization or project.