State whether the following statements are TRUE or FALSE and explain your answer (d) Income elasticity of demand (E.) is a measure of the degree of responsiveness of changes in the quantity demanded of goods to a change in its price. (e) If the value of income elasticity of demand for goods is negative(E, <0), the quantity demanded will decrease when income increases. Therefore, the goods is an essential goods. (f)Microeconomics is the branch of economics that analyses the behaviour of how national economies work.

State whether the following statements are TRUE or FALSE and explain your answer (d) Income elasticity of demand (E.) is a measure of the degree of responsiveness of changes in the quantity demanded of goods to a change in its price. (e) If the value of income elasticity of demand for goods is negative(E, <0), the quantity demanded will decrease when income increases. Therefore, the goods is an essential goods. (f)Microeconomics is the branch of economics that analyses the behaviour of how national economies work.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...

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