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If the Income Elasticity of a Good Is Negative, Say

Question 153

Multiple Choice

If the income elasticity of a good is negative, say -1.8, we can infer that the good is a(n)


A) luxury good, such as holiday travel
B) substitute good, such as Pepsi, with Coke available
C) complementary good, such as Pepsi, with a candy bar available
D) inferior good, such as a non-color televison
E) essential good, such as food

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