객관식
Which of the following statements relating to income elasticity of demand is true?
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4. Elasticity
Income Elasticity of Demand
객관식
Which of the following best describes the concept of income elasticity of demand in relation to the difference in weekly earnings between a college graduate and someone with some college education?
A
It shows the change in supply of labor as more individuals attain a college degree.
B
It measures how the quantity demanded of a good changes as the income of college graduates increases compared to those with some college.
C
It calculates the absolute difference in weekly earnings between college graduates and those with some college.
D
It determines the price elasticity of demand for higher education based on weekly earnings.
검증된 단계별 안내1
Step 1: Understand the concept of income elasticity of demand. It measures the responsiveness of the quantity demanded of a good or service to a change in consumer income, holding other factors constant.
Step 2: Recognize that income elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in income, expressed as: \(\text{Income Elasticity of Demand} = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in income}}\).
Step 3: Apply this concept to the context of weekly earnings differences between college graduates and those with some college education. The focus is on how the demand for a good or service changes as the income of these groups changes.
Step 4: Differentiate income elasticity of demand from other concepts such as supply changes, absolute income differences, or price elasticity of demand, which relate to different economic relationships.
Step 5: Conclude that the correct interpretation involves measuring how the quantity demanded of a good changes as the income of college graduates increases relative to those with some college education, rather than measuring supply changes or absolute income differences.
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