Multiple Choice
Suppose that the income elasticity of demand for new clothes is positive. Other things being equal, which of the following statements is CORRECT?
A) New clothes are a normal good.
B) The quantity demanded of new clothes decreases as a consumer's income declines.
C) There exists a positive relationship between income and the demand for new clothes.
D) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
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