The Income Elasticity of Demand for Bicycles Is +10, Which

question 110

Multiple Choice

The income elasticity of demand for bicycles is +10, which implies that bicycles are

• A) an inferior good.
• B) a normal good.
• C) a complement good for motorbikes.
• D) a substitute good for motorbikes.

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Definitions:

Entrepreneurs

Individuals who start and operate their own businesses, taking on financial risk in the hope of profit.

Capitalist Economy

A Capitalist Economy is an economic system where private individuals and businesses own the means of production and operate for profit, with minimal government intervention.

Financial Risk

The possibility of losing money on an investment or business venture.