Say That a Consumer's Income Elasticity of Demand Over the Relevant

question 14

Multiple Choice

Say that a consumer's income elasticity of demand over the relevant range is equal to 2. When she has a monthly income of $2,000, she spends $600 on food. If her monthly income rose to $4,000, how much would she spend on food?

• A)​$900.
• B)​$1200.
• C)​$1800.
• D)​$2400.

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Definitions:

Intrusive Thoughts

Unwanted thoughts, images, or urges that repeatedly enter a person’s mind, often causing significant anxiety or discomfort.

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often associated with better long-term outcomes.

Panic Button Effect

The phenomenon where access to a means of getting help in emergency situations (such as a panic button) can notably reduce anxiety and fear.

Recreational Athletics

Sports or physical activities engaged in for enjoyment, health, or social interaction, rather than for professional or competitive purposes.