In turns out that seafood is a normal, income elastic good. It follows that a 10% rise in income will seafood demand and produce a coefficient of income elasticity of than one. decrease; less increase; less increase; more decrease; more

In turns out that seafood is a normal, income elastic good. It follows that a 10% rise in income will seafood demand and produce a coefficient of income elasticity of than one. decrease; less increase; less increase; more decrease; more

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In turns out that seafood is a normal, income elastic good. It follows that a 10% rise in income will
seafood demand and produce a coefficient of income elasticity of
than one.
decrease; less
increase; less
increase; more
decrease; more

Expert Solution

Step 1

A good is a normal good when its demand increases with increase in income and decreases with decrease in income.

A good is income elastic when coefficient of income elasticity is greater than 1, and is income inelastic when coefficient of income elasticity is less than 1.

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