Multiple Choice
If incomes fall by 5 percent and the quantity demanded for new cars falls by 10 percent,
A) New cars are a normal good,and the income elasticity is +.5.
B) New cars are an inferior good,and the income elasticity is +2.0.
C) New cars are a normal good,and the income elasticity is +2.0.
Correct Answer:
Verified
Correct Answer:
Verified
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