Multiple Choice
Average income in the town of Growthville increased by 8% last year, and as a result, sales of pedicures increased by 12%. The income elasticity of demand is _____, and pedicures would be classified as a(n) _____ good.
A) 0.67; normal
B) 0.67; inferior
C) 1.5; normal
D) 1.5; inferior
Correct Answer:
Verified
Correct Answer:
Verified
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