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If a 10 Percent Increase in Income Leads to a 5

Question 44

Multiple Choice

If a 10 percent increase in income leads to a 5 percent decrease in the demand for a good,the income elasticity of demand equals ________ and the good is ________ good.


A) 1/2; a normal
B) -1/2; an inferior
C) 2; a normal
D) -2; a normal
E) -5; an inferior

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