If the income elasticity of demand for a good is -2.5, thenit is a normal good, and its demand curve will shift to the left if buyers' incomes increaseO it is a normal good, and its demand curve will shift to the right if buyers' incomes increaseit is an inferior good, and its demand curve will shift to the right if buyers' incomes increaseit is an inferior good, and its demand curve will shift to the left if buyers' incomes increasethere is insufficient information to determine whether the good is normal or inferior

Income elasticity is the responsiveness of quantity demanded to the change in income.Income…

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If the income elasticity of demand for a good is -2.5, then

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

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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