If Income Elasticity of Demand for a Good Is Negative

question 58

Multiple Choice

If income elasticity of demand for a good is negative, the good is a(n) __________ good.

• A)normal
• B)positive
• C)complementary
• D)substitute
• E)inferior

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Definitions:

Relevant Cost

Costs that are directly influenced by a specific business decision and will change as a result of that decision.

Existing Stocks

Refers to the inventory of goods or materials that a company currently holds.

Idle Capacity

The portion of a company's resources that could be used for production but remains unutilized during a certain period.

Damaged Van

A van that has suffered physical harm or injury, impacting its value and functionality.