The Demand Curve for a Good with an Income Elasticity

question 94

Multiple Choice

The demand curve for a good with an income elasticity of less than one

• A)must be downward sloping.
• B)must be upward sloping.
• C)will be upward sloping only if the substitution effect outweighs the income effect.
• D)will be upward sloping only if the income effect outweighs the substitution effect.
• E)indicates a normal good.

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Definitions:

Federal Arbitration Act

U.S. federal law that provides the legal foundation for the enforcement of arbitration agreements and governs the conduct of arbitration proceedings.

Summary Jury Trial

A shortened trial that serves as an alternative dispute resolution method, involving a jury which listens to a summary of the case and renders an advisory verdict.

Submission Agreement

A contract which provides that a specific dispute will be resolved in arbitration.

ADR Techniques

Alternative Dispute Resolution methods, including mediation, arbitration, and negotiation, used to resolve conflicts outside the traditional court system.