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When Income Increases by 1%,the Quantity Demanded of a Good

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When income increases by 1%,the quantity demanded of a good decreases by 2%.What is the income elasticity of the good? Is the good normal or inferior? Why?


Definitions:

Zero-order Reaction

A chemical reaction where the speed at which it occurs is unaffected by the amount of reactant(s) present.

Reactant Concentration

The amount of reactants present in a given volume of solution at the start of a chemical reaction, influencing the reaction rate.

First-order Reaction

A chemical reaction whose rate is directly proportional to the concentration of a single reactant.

Half-life

The time required for a quantity to reduce to half its initial value, often used to describe the rate of decay of radioactive substances.

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