Suppose that as result of a 10% increase in income, the quantity demanded of Good X increases by 20%. Which of the following is true? Possible Answers: Good X is an inferior good. The income elasticity of demand for Good X is less than 0. The income elasticity of demand for Good X is between 0 and 1. The income elasticity of demand for Good X is greater than 1. The income elasticity of demand for Good X is equal to 1.
Suppose that as result of a 10% increase in income, the quantity demanded of Good X increases by 20%. Which of the following is true? Possible Answers: Good X is an inferior good. The income elasticity of demand for Good X is less than 0. The income elasticity of demand for Good X is between 0 and 1. The income elasticity of demand for Good X is greater than 1. The income elasticity of demand for Good X is equal to 1.
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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