Use the Figure to Calculate the Income Elasticity of Demand

question 40

Multiple Choice

Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:

• A)-1.0
• B)-0.1818
• C)0.1818
• D)-1.5
• E)1.2

---

Definitions:

Synaptic Firing Potential

The likelihood or ability of neurons to transmit an electrical or chemical signal across the synapse to another neuron.

Priming

The psychological phenomenon in which exposure to a stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Flashbulb Memory

Highly detailed and vivid memory of the circumstances surrounding a particularly shocking or emotional event.