When income rises by 3 percent and other things remain the same, the quantity demanded of good C decreases by 6 percent. Calculate the income elasticity of demand for good C. Is good C a normal good or an inferior good? How does the demand for good C change? The income elasticity of demand for good C is -2 >>> Answer to 1 decimal place. Good Cis GOLD good and as income rises, the demand for good C OA. a complementary; increases B. an inferior, decreases C. a normal; increases D. an inferior, increases E. a normal; decreases

When income rises by 3 percent and other things remain the same, the quantity demanded of good C decreases by 6 percent. Calculate the income elasticity of demand for good C. Is good C a normal good or an inferior good? How does the demand for good C change? The income elasticity of demand for good C is -2 >>> Answer to 1 decimal place. Good Cis GOLD good and as income rises, the demand for good C OA. a complementary; increases B. an inferior, decreases C. a normal; increases D. an inferior, increases E. a normal; decreases

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 31CTQ: Economists define normal goods as having a positive income elasticity. We can divide normal goods...

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Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
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