A 20% increase in income leads to a 10% decrease in the quantity of hot dogs demanded but the price of hot dogs doesn't change. From this information, we can assume: hot dogs are an inferior good and price elasticity of demand is less than 1. hot dogs are an inferior good and price elasticity of supply is infinite. hot dogs are an inferior good and price elasticity of supply is equal to zero. hot dogs are a normal good and price elasticity of demand is greater than 1
A 20% increase in income leads to a 10% decrease in the quantity of hot dogs demanded but the price of hot dogs doesn't change. From this information, we can assume: hot dogs are an inferior good and price elasticity of demand is less than 1. hot dogs are an inferior good and price elasticity of supply is infinite. hot dogs are an inferior good and price elasticity of supply is equal to zero. hot dogs are a normal good and price elasticity of demand is greater than 1
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A 20% increase in income leads to a 10% decrease in the quantity of hot dogs demanded but the
hot dogs are an inferior good and
hot dogs are an inferior good and price elasticity of supply is equal to zero. hot dogs are a normal good and price elasticity of demand is greater than 1
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