The Term or Phrase Most Likely to Indicate a Normative

question 77

Multiple Choice

The term or phrase most likely to indicate a normative statement is

• A) "ceteris paribus."
• B) "factual." or "what is" statement.
• C) "holding other things constant."
• D) "should" or "ought to."

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumers' income.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression, often indicating proportionality.

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Elasticity

A rephrased definition: The responsiveness of demand for an item to changes in the income of the people demanding the item.