Suppose that as result of a 10% increase in income, the quantity demanded of Good X increases by 20%. Which of the following is true? Possible Answers: Good X is an inferior good. The income elasticity of demand for Good X is less than 0. The income elasticity of demand for Good X is between 0 and 1. The income elasticity of demand for Good X is greater than 1. The income elasticity of demand for Good X is equal to 1.
Suppose that as result of a 10% increase in income, the quantity demanded of Good X increases by 20%. Which of the following is true? Possible Answers: Good X is an inferior good. The income elasticity of demand for Good X is less than 0. The income elasticity of demand for Good X is between 0 and 1. The income elasticity of demand for Good X is greater than 1. The income elasticity of demand for Good X is equal to 1.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...
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![Suppose that as result of a 10% increase in
income, the quantity demanded of Good X
increases by 20%. Which of the following
is true?
Possible Answers:
Good X is an inferior good.
The income elasticity of demand for Good X is less
than 0.
The income elasticity of demand for Good X is
between 0 and 1.
The income elasticity of demand for Good X is
greater than 1.
The income elasticity of demand for Good X is equal
to 1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4291143b-566d-440e-86c2-f2ed15b120f0%2F8ac92233-ed5e-46e5-9b4b-7571576aee7a%2F6514q1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that as result of a 10% increase in
income, the quantity demanded of Good X
increases by 20%. Which of the following
is true?
Possible Answers:
Good X is an inferior good.
The income elasticity of demand for Good X is less
than 0.
The income elasticity of demand for Good X is
between 0 and 1.
The income elasticity of demand for Good X is
greater than 1.
The income elasticity of demand for Good X is equal
to 1.
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