Multiple Choice
If a 5 percent increase in income brings about a 10 percent decrease in the demand for a good,then the
A) good is a normal good.
B) good is an inferior good.
C) income elasticity of demand is 0.5.
D) income elasticity of demand is 2.0.
E) income elasticity of demand is 5.0.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q301: A firm can sell 10 units if
Q302: Recently the governor of Vermont proposed that
Q303: For a product with a rapidly increasing
Q304: If the cross elasticity of demand for
Q305: If the price doubles and the quantity
Q307: If the price elasticity of demand for
Q308: One reason why the demand for gasoline
Q309: Which of the following explains why supply
Q310: The demand for necessities generally is _
Q347: What happens to the price elasticity of