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If a Product's Income Elasticity of Demand Is -1

Question 125

Multiple Choice

If a product's income elasticity of demand is -1.7,then we can conclude that


A) an increase in income will lead to an increase in demand for the product.
B) the product is certainly a necessity.
C) the product is a luxury good.
D) a decrease in income will lead to an increase in demand for the product.
E) the product is a normal good.

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