Calculate the Income Elasticity If an 8 Percent Increase in Income

question 73

Multiple Choice

Calculate the income elasticity if an 8 percent increase in income leads to a 4 percent increase in quantity demanded for organic produce.

• A)-0.66
• B)0.5
• C)1.5
• D)2

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Definitions:

Marketing Department

A division within a company that focuses on marketing strategies, research, and the promotion of products or services to target consumers.

Short Term

A period of time that is relatively brief, typically measuring days, weeks, or months, often used in planning and decision-making contexts.

Quality of Life

A multidimensional concept that usually includes subjective evaluations of both positive and negative aspects of life.