Income Elasticity of Demand Reflects

question 153

Multiple Choice

Income elasticity of demand reflects

• A) the change in total quantity demanded divided by the total change in income.
• B) the responsiveness of the quantity demanded to changes in income, adjusting its relative price so real income does not change.
• C) the responsiveness of income of producers to a change in quantity sold of the good.
• D) the responsiveness of demand to changes in income.

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Definitions:

Ethical Issues

Moral challenges and dilemmas that arise in the context of professional and personal conduct.

Scanlon Plan

An incentive plan designed to encourage cooperation, involvement, and sharing of benefits among employees through improved performance and productivity.

Gainsharing

Group incentive program that measures improvements in productivity and effectiveness objectives and distributes a portion of each gain to employees.