The price elasticity of demand coefficient for a good will be lower in all of the following cases EXCEPT Select one: a. If the good is luxury b. If a small portion of the budget will be spent on the good. c. In the short run than in the long run. d. If there are few or no substitutes.

The price elasticity of demand coefficient for a good will be lower in all of the following cases EXCEPT Select one: a. If the good is luxury b. If a small portion of the budget will be spent on the good. c. In the short run than in the long run. d. If there are few or no substitutes.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6QR: What do we call a good with an income elasticity less than zero?

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Question

The price elasticity of demand coefficient for a good will be lower in all of the following cases EXCEPT

Select one:

a. If the good is luxury

b. If a small portion of the budget will be spent on the good.

c. In the short run than in the long run.

d. If there are few or no substitutes.

For a normal good with a downward sloping demand curve:

Select one:

a. The price elasticity of demand is negative; the income elasticity of demand is negative.

b. The price elasticity of demand is negative; the income elasticity of demand is positive.

c. The price elasticity of demand is positive; the income elasticity of demand is negative.

d. The price elasticity of demand is positive; the income elasticity of demand is positive.

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