객관식
Johnny Clutch just got a raise from \$900 per week to \$1100 per week. As a result, he decreases the amount of ramen noodles he buys from seven cartons a week to one carton a week. For Johnny, ramen noodles are:
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4. Elasticity
Income Elasticity of Demand
객관식
What is income elasticity of demand?
A
A measure of how much quantity demanded changes in percentage terms in response to a one percent change in the good's price (price elasticity of demand).
B
A measure of how much quantity demanded changes in percentage terms in response to a one percent change in consumer income (percentage change in quantity demanded divided by percentage change in income).
C
The change in quantity demanded when consumer income changes by one monetary unit (absolute change in quantity per unit of income).
D
A measure of how quantity demanded responds to changes in the price of related goods (cross-price elasticity of demand).
검증된 단계별 안내1
Step 1: Understand the concept of elasticity in economics, which measures the responsiveness of one variable to changes in another variable.
Step 2: Recognize that income elasticity of demand specifically measures how the quantity demanded of a good changes in response to changes in consumer income.
Step 3: Recall the formula for income elasticity of demand, which is given by:
\[\text{Income Elasticity of Demand} = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in income}}\]
Step 4: Note that this elasticity tells us whether a good is a normal good (positive elasticity) or an inferior good (negative elasticity) based on how demand changes with income.
Step 5: Differentiate income elasticity of demand from other elasticities such as price elasticity of demand (which relates to price changes) and cross-price elasticity of demand (which relates to changes in prices of related goods).
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