The Income Elasticity of Demand for Bicycles Is +10, Which

question 431

Multiple Choice

The income elasticity of demand for bicycles is +10, which implies that bicycles are

• A) an inferior good.
• B) a normal good.
• C) a substitute good for motorbikes.
• D) a complement good for motorbikes.

---

Definitions:

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.

Bargaining Power

The capacity of one party to dominate the terms of negotiation due to their position, resources, or strategic advantage over the others.

Layoffs

The act of temporarily or permanently dismissing employees from their jobs, often due to economic downturns, restructuring, or changes in business strategy.

Bankruptcies

Legal proceedings involving individuals or businesses that cannot repay their debts, resulting in the liquidation or reorganization of assets under court supervision.