【ACCA选择题】
第一题:The income elasticity of demand for a product is high.This means that:
A Sales will fall only slightly when incomes of households fall
B Sales will rise sharply when incomes of households rise
C The good is an inferior good
第一题:Using the point method,what is the price elasticity of demand of product X as price falls from its current price of$20 to$15?
第一题:B
Rationale:The income elasticity of demand measures the responsiveness of demand to changes in consumers'incomes.An'inferior'good has a negative income elasticity:as incomes fall,more is bought.
第一题:D
Rationale:Percentage change in quantity=50%.Percentage change in price=25%.