For Product X, the Income Elasticity of Demand Is -2

question 456

Multiple Choice

For Product X, the income elasticity of demand is -2.56. Which of the following is therefore true?

• A) Product X is a necessity.
• B) Product X is a luxury.
• C) Product X is an inferior good.
• D) Product X is a normal good.

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Definitions:

Fructose

A simple sugar found in many plants that is sweet-tasting and often used in food and drink products.

Fibrinogen

A plasma protein produced by the liver and converted by thrombin into fibrin during blood clotting.

Mucus

Viscous secretion produced by and covering mucous membranes; lubricates mucous membranes and traps foreign substances.

Prostate Gland

A gland in the male reproductive system that produces a fluid component of semen.