You are hired by a firm to look at several of its products. The firm is concerned that recession will come soon, and therefore that American average incomes will fall. It therefore asks you to consider several of its products and tell them which are likely to experience an increase in demand when income decreases. In other words, you'll be looking for goods with O positive income elasticity negative income elasticity O positive cross-price elasticity negative cross-price elasticity

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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You are hired by a firm to look at several of its products. The firm is concerned that recession
will come soon, and therefore that American average incomes will fall. It therefore asks you to
consider several of its products and tell them which are likely to experience an increase in
demand when income decreases.
In other words, you'll be looking for goods with
O positive income elasticity
negative income elasticity
O positive cross-price elasticity
negative cross-price elasticity
Transcribed Image Text:You are hired by a firm to look at several of its products. The firm is concerned that recession will come soon, and therefore that American average incomes will fall. It therefore asks you to consider several of its products and tell them which are likely to experience an increase in demand when income decreases. In other words, you'll be looking for goods with O positive income elasticity negative income elasticity O positive cross-price elasticity negative cross-price elasticity
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