Multiple Choice
A firm knows that Mike's income elasticity of demand for hair ties is 5 while for Sally it is 0.2. A firm can reason that a hair tie is a(n) good for Mike while it is a(n) good for Sally.
A) normal; inferior
B) complement; substitute
C) necessity; luxury
D) inferior; normal
E) luxury; necessity
Correct Answer:
Verified
Correct Answer:
Verified
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