问题


There is a single choice question about high school microeconomics. Answer the question by replying A, B, C or D.
Question: You are told that the income elasticity for DVDs is + 1.5. This means that
A. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good.
B. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are an inferior good.
C. a 10 percent increase in income produces a 15 percent decrease in consumption of DVDs. DVDs are an inferior good.
D. a 10 percent increase in the price of DVDs produces a 15 percent decrease in consumption of DVDs. DVDs are a price elastic good.
Answer:

答案

模型 模型答案 正确答案
金声玉亮2.0

A.

Explanation:

Income elasticity measures the responsiveness of the quantity demanded of a good to changes in income. A positive income elasticity indicates that the good is a normal good, meaning that as income increases, the quantity demanded of the good also increases. In this case, the income elasticity of +1.5 means that a 10% increase in income leads to a 15% increase in the consumption of DVDs. This indicates that DVDs are a normal luxury good, as the quantity demanded increases more than proportionally with income.

Therefore, option A is the correct answer.

Option B is incorrect because a positive income elasticity indicates that DVDs are a normal good, not an inferior good.

Option C is incorrect because a positive income elasticity indicates that the quantity demanded of DVDs increases with income, not decreases.

Option D is incorrect because income elasticity measures the responsiveness of quantity demanded to changes in income, not changes in price. Price elasticity measures the responsiveness of quantity demanded to changes in price.

So, the correct answer is A.
A
deepseekr1

Answer: A
The income elasticity of +1.5 indicates that a 10% increase in income leads to a 15% increase in DVD consumption (1.5 × 10%). A positive elasticity confirms DVDs are a normal good. Since the elasticity exceeds 1, they are classified as a luxury. Options B and C incorrectly label DVDs as inferior, and D incorrectly focuses on price elasticity instead of income elasticity.
A
gpto1 A A
GPT-4o A. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good. A
llama3.1-70B-Instruct

A
A
llama3.1-405B-Instruct

A.

Explanation:

Income elasticity measures the responsiveness of the quantity demanded of a good to changes in income. A positive income elasticity indicates that the good is a normal good, meaning that as income increases, the quantity demanded of the good also increases. In this case, the income elasticity of +1.5 means that a 10% increase in income leads to a 15% increase in the consumption of DVDs. This indicates that DVDs are a normal luxury good, as the quantity demanded increases more than proportionally with income.

Therefore, option A is the correct answer. Options B and C are incorrect because they misinterpret the sign of the income elasticity, and option D is incorrect because it refers to price elasticity rather than income elasticity.
A
DeepSeek-Coder-V2 A A
Qwen2-72B-Instruct A. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good. A
baichuan4 A. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good. A
doubao A

Income elasticity of +1.5 indicates that a 10% increase in income leads to a 15% increase in the consumption of DVDs, and a positive income elasticity means DVDs are a normal good. A relatively high income elasticity value like 1.5 also suggests that DVDs are more of a luxury good.
A
minimax A. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good. A
kimi A. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good. A
wenxinyiyan A

Explanation:
The income elasticity of demand measures the responsiveness of the quantity demanded of a good to changes in consumer income. It is calculated as the percentage change in quantity demanded divided by the percentage change in income.

An income elasticity of +1.5 means that a 10 percent increase in income would lead to a 15 percent increase in the consumption of DVDs. This is because the income elasticity is greater than 1, indicating that DVDs are a normal luxury good. Normal goods are those whose consumption increases with an increase in income, and luxury goods are those that have an income elasticity greater than 1, meaning they are more responsive to changes in income than are necessity goods.

Therefore, the correct answer is A: a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good.
A
zhipu A. a 10 percent increase in income produces a 15 percent increase in consumption of DVDs. DVDs are a normal luxury good.

Explanation: Income elasticity of demand measures how much the quantity demanded of a good responds to a change in income. A positive income elasticity indicates that the good is a normal good, meaning that as income increases, the demand for the good also increases. An elasticity greater than 1 indicates that the good is a luxury, as the percentage change in quantity demanded is greater than the percentage change in income. In this case, an income elasticity of +1.5 means that a 10% increase in income leads to a 15% increase in the consumption of DVDs, confirming that DVDs are a normal luxury good.
A
gpto1 A A