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If the Income Elasticity of Demand for Store Brand Macaroni

Question 126

Multiple Choice

If the income elasticity of demand for store brand macaroni and cheese is −3.00, this means that


A) store brand macaroni and cheese is a substitute for name brand macaroni and cheese.
B) store brand macaroni and cheese is a normal good.
C) store brand macaroni and cheese is an inferior good.
D) more store brand macaroni and cheese will be purchased when its price falls.

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