The Demand Curve for a Good with an Income Elasticity

question 112

Multiple Choice

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

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

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