Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If the income elasticity of demand for a good is -2.5, then
it is a normal good, and its demand curve will shift to the left if buyers' incomes increase
O it is a normal good, and its demand curve will shift to the right if buyers' incomes increase
it is an inferior good, and its demand curve will shift to the right if buyers' incomes increase
it is an inferior good, and its demand curve will shift to the left if buyers' incomes increase
there is insufficient information to determine whether the good is normal or inferior
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