If your salary increases by 30% and in response you increase your clothing purchases by 20%, income elasticity equals OA. 0.67; AN INFERIOR GOOD OB. 1.5; A LUXURY GOOD O C. 0.67; A NORMAL GOOD OD. 1.5; AN INFERIOR GOOD O E. 1.5; A NORMAL GOOD and clothing is
If your salary increases by 30% and in response you increase your clothing purchases by 20%, income elasticity equals OA. 0.67; AN INFERIOR GOOD OB. 1.5; A LUXURY GOOD O C. 0.67; A NORMAL GOOD OD. 1.5; AN INFERIOR GOOD O E. 1.5; A NORMAL GOOD and clothing is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 3
If your salary increases by 30% and in response you increase your clothing purchases by 20%, income elasticity equals
O A. 0.67; AN INFERIOR GOOD
OB. 1.5; A LUXURY GOOD
O C. 0.67; A NORMAL GOOD
O D. 1.5; AN INFERIOR GOOD
O E. 1.5; A NORMAL GOOD
4
and clothing is
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