If a Good Has an Income Elasticity of 0

question 43

Multiple Choice

If a good has an income elasticity of 0.18, then it is a(n) _____ good and a _____.

• A) normal; necessity
• B) normal; luxury
• C) inferior; necessity
• D) inferior; luxury

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Definitions:

Product Feature

A characteristic or attribute of a product that is intended to offer value or solve a specific problem for the consumer.

Performance Characteristic

Features or aspects of a product or service that determine its ability to meet its intended function or user requirements.

Product

An item or service that is created, manufactured, or refined for sale.

Want

A desire for something that isn't essential but is desired for satisfaction or fulfillment.