If the Income Elasticity of Demand for Chocolate Chip Cookies

question 111

Multiple Choice

If the income elasticity of demand for chocolate chip cookies is 1.5,then chocolate chip cookies are

• A)a normal good and income elastic.
• B)a normal good and income inelastic.
• C)price elastic.
• D)an inferior good and income elastic.
• E)an inferior good and income inelastic.

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Definitions:

Net Present Value

A calculation used to evaluate the profitability of an investment, subtracting the present values of cash outflows from the present values of cash inflows.

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