If a Good Is Inferior, Then the Income Elasticity of Demand

question 171

Multiple Choice

If a good is inferior, then the income elasticity of demand for that good is

• A)positive and greater than 1
• B)negative
• C)positive and less than 1
• D)0
• E)perfectly elastic

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Definitions:

Net Loss

The amount by which expenses exceed revenues, indicating a financial loss for a period.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total income.

Missing Figures

Calculations or estimations used to fill in the gaps of incomplete financial records or statements.

Independent Scenarios

Situations or variables in an analysis that do not depend on or affect each other.