The income elasticity of demand is a. always negative. b. always positive. c. negative for a normal good and positive for an inferior good. d. positive for a normal good and negative for an inferior good.
The income elasticity of demand is a. always negative. b. always positive. c. negative for a normal good and positive for an inferior good. d. positive for a normal good and negative for an inferior good.
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 8E
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Question
The income elasticity of demand is
a.
always negative.
b.
always positive.
c.
negative for a normal good and positive for an inferior good.
d.
positive for a normal good and negative for an inferior good.
Clear my choice
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