If the Income Elasticity of Demand for Noodles Is -2

question 1

Multiple Choice

If the income elasticity of demand for noodles is -2 and the percentage change in the quantity consumed is 5%, what is the percentage change in income?

• A) 2.5%
• B) 10%
• C) -2.5%
• D) -10%
• E) -0.4%

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Definitions:

Nausea

A sensation of unease and discomfort in the stomach with an urge to vomit.

Albert Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.

Acquisition

The process of learning or obtaining knowledge, skills, or attitudes.

Performance

The act or process of carrying out a task or function, often measured against preset standards.