Suppose That the Income Elasticity of Demand for New Clothes

question 55

Multiple Choice

Suppose that the income elasticity of demand for new clothes is positive. Other things being equal, which of the following statements is correct?

• A)New clothes are a normal good.
• B)The quantity demanded of new clothes decreases as a consumerʹs income declines.
• C)There exists a positive relationship between income and the demand for new clothes.
• D)all of the above

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Definitions:

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