The Income Elasticity of Demand of a Normal Good Is

question 193

Multiple Choice

The income elasticity of demand of a normal good is always:

• A)greater than 0.
• B)less than 0.
• C)equal to 0.
• D)impossible to determine without more information about the type of good in question.

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Definitions:

Judged

Considered or deemed to be in a certain way, often after careful assessment.

Soundness

The attribute of an argument when it is both logically valid and its premises are true.

Cogency

The quality of an argument being convincing or persuasive due to the truth of its premises and its logical structure.

Inductive Argument

Reasoning in which the premises seek to supply strong evidence for (not absolute proof of) the truth of the conclusion.