If We Observe That When Consumers' Incomes Rise by 10

question 92

True/False

If we observe that when consumers' incomes rise by 10%, the quantity demanded of ice cream increases by 5%, then ice cream is an inferior good.

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Definitions:

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, serving as a basis for comparison for other distributions.

Mean

The arithmetic average of a set of values, calculated by adding all the values together and dividing by the number of values.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation means the values are close to the mean, while a high standard deviation means the values are dispersed over a wider range.

Standard Normal Random Variable

A random variable with a mean of zero and a variance of one, following the standard normal distribution.