Assume the Income Elasticity of a Good Has Been Calculated

question 98

Multiple Choice

Assume the income elasticity of a good has been calculated to be +0.83.Based on this information,we can infer that the good is:

• A)a normal good and a luxury.
• B)an inferior good and a necessity.
• C)a normal good and a necessity.
• D)an inferior good and a luxury.

---

Definitions:

Cumulative Preferred Stock

Stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.

Cash Dividends

A disbursement of profits from a company to its owners or investors, usually as a profit-sharing mechanism.

Common Stock

Common Stock represents units of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Asset

An economic resource owned or controlled by an individual, corporation, or country, expected to provide future benefits.