Assume That a 4 Percent Decrease in Income Results in a 6

question 211

Multiple Choice

Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good.The income elasticity of demand for the good is

• A)negative,and the good is an inferior good.
• B)negative,and the good is a normal good.
• C)positive,and the good is an inferior good.
• D)positive,and the good is a normal good.

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Definitions:

Gelatin-Like Material

A squishy, jelly-like substance often used in culinary, medical, and cosmetic products, derived from collagen obtained from various animal parts.

Transparent

Characterized by openness and clarity, allowing full visibility of processes, intentions, or operations.

Optic Nerve

The nerve that transmits visual information from the retina to the brain, distinct from but closely related to the optic chiasms where these nerves intersect.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which acts as the film in a camera, capturing images.