Suppose the Consumer's Income Elasticity for Good Is -010 When Monthly Income Is $1,000, and the Consumer's Income
True/False
Suppose the consumer's income elasticity for good is -0.10 when monthly income is $1,000, and the consumer's income elasticity for good is 0.10 when monthly income is $2,000. From this information we can infer that good is a normal good for low levels of income and an inferior good for high levels of income.
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Correct Answer:
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