Multiple Choice
Which of the following statements is false?
A) If the income elasticity of demand for a good is less than 1, the demand for the good is income inelastic.
B) If the income elasticity of demand for a good is greater than 1, the demand for the good is income elastic.
C) If the income elasticity of demand for a good is equal to 1, the demand for the good is income unit elastic.
D) If the income elasticity of demand for a good is less than zero, the good is a normal good.
E) A good can be both a normal good and income inelastic.
Correct Answer:
Verified
Correct Answer:
Verified
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