Answered: 18. If the income elasticity of bikes…

18. If the income elasticity of bikes is 0.72, then bikes are A) a necessity and a normal good. B) a normal good. C) a necessity. D) an inferior good.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...

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Question

18. If the income elasticity of bikes is 0.72, then
bikes are
A) a necessity and a normal good.
B) a normal good.
C) a necessity.
D) an inferior good.

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