Income elasticity measures the
A) Responsiveness of quantity demanded for one good to a percentage change in price of another good.
B) Responsiveness of quantity demanded to a percentage change in income.
C) Way in which consumers switch from one product to another when price rises.
D) Percentage change in quantity demanded given a percentage change in wealth.
Correct Answer:
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Q82: Suppose the income elasticity of demand for
Q83: If a good is normal,its
A)Price elasticity of
Q84: The demand for normal goods
A)Rises when incomes
Q85: If the price of Coke rises by
Q86: Assume that store brand cereal is an
Q88: If two goods are substitute goods,
A)The percentage
Q89: Ceteris paribus,if income increases and as a
Q90: If two goods are complementary goods,then
A)The cross-price
Q91: Which of the following is most likely
Q92: If the cross-price elasticity of demand for
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