Explain in your own words what information the income elasticity of demand provides.   If a good is an inferior good, what will the sign of the income elasticity of demand be?  Explain.

Managerial Economics: A Problem Solving Approach
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  1.   Explain in your own words what information the income elasticity of demand provides.
  2.   If a good is an inferior good, what will the sign of the income elasticity of demand be?  Explain. 



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