Suppose Good X Has a Positive Income Elasticity of Demand

question 185

Multiple Choice

Suppose good X has a positive income elasticity of demand. This implies that good X could be
(i) a normal good.
(ii) a necessity.
(iii) an inferior good.
(iv) a luxury.

• A)(i) only
• B)(i) and (ii) only
• C)(i), (ii), and (iv) only
• D)(iii) only

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Definitions:

Tortious Acts

Actions that cause harm or injury to another person, making the actor legally liable for damages.

Franchisor Liability

Legal responsibility of the franchisor for certain happenings within the franchisee's business operation, depending on the level of control exercised by the franchisor.

Annual Sales

The total revenue generated from goods or services sold over a fiscal year.

Franchise Percentage

The portion of revenues or profits given to a franchisor by a franchisee as a contractual payment for being part of the franchisor’s system.