Solved

If a 10 Per Cent Increase in Income Results in an 8

Question 122

Multiple Choice

If a 10 per cent increase in income results in an 8 per cent increase in the quantity demanded of a good, the income elasticity of demand equals _______ and the good is _______ good.


A) 1.2; a normal
B) - 1.2; an inferior
C) 0.80; a normal
D) 0.80; an inferior

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q117: When the percentage change in quantity demanded

Q118: For electricity, natural gas, or other forms

Q119: Which of the following items will have

Q120: Demand is inelastic when a price _

Q121: Which of the following statements is FALSE?<br>A)

Q123: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4952/.jpg" alt=" -The figure shows

Q124: The concept of elasticity of supply measures

Q125: If the cross elasticity of demand between

Q126: If tea and coffee are substitutes, the

Q127: Producers' total revenue will increase if<br>A) the