Bob got laid off six months ago.He used to go to the movies once a month,but he's only been twice since losing his job.This type of behavior can be measured using:
A)the price elasticity of demand.
B)the price elasticity of supply.
C)the income elasticity of demand.
D)the cross-price elasticity.

Question

Quizplus · Accepted Answer

The decrease in Bob's movie-going behavior is likely due to his decrease in income after losing his job. Therefore, the relevant concept to measure this change is the income elasticity of demand, which measures how sensitive demand is to changes in income.

Bob Got Laid Off Six Months Ago