Multiple Choice
Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good.The income elasticity of demand for the good is
A) negative and therefore the good is an inferior good.
B) negative and therefore the good is a normal good.
C) positive and therefore the good is an inferior good.
D) positive and therefore the good is a normal good.
Correct Answer:
Verified
Correct Answer:
Verified
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