If a 5 Per Cent Increase in Income Brings About

question 1

Multiple Choice

If a 5 per cent increase in income brings about a 10 per cent decrease in the demand for a good, then the

• A) good is an inferior good.
• B) income elasticity of demand is 0.5.
• C) income elasticity of demand is 5.0.
• D) income elasticity of demand is 2.0.
• E) good is a normal good.

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United States Generally Accepted Accounting Principles, the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC) for financial reporting.

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