If the Income Elasticity of Demand for a Good Is

question 131

Short Answer

If the income elasticity of demand for a good is -1.40, is the good a normal or inferior good?

---

Definitions:

Days' Sales

A financial metric that estimates the average time it takes for a company to collect cash from its customers after a sale has been made, often related to inventory turnover.

Receivables

Financial assets representing money owed to an entity by others for goods delivered or services provided on credit.

Return on Total Assets

A financial ratio that measures the net income produced by total assets during a period.

Interest Expense

The cost incurred by an entity for borrowing funds, represented as an expense on the income statement.