Because Product X Has a Large Positive Income Elasticity, It

question 29

Multiple Choice

Because Product X has a large positive income elasticity, it is likely that the product

• A) has many good substitutes.
• B) has few good complements.
• C) is a necessity.
• D) is a luxury.

---

Definitions:

Clean-Up Requirements

Environmental or legal directives that mandate the remediation of pollution or contaminants from a site.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender, which can reduce the effective amount of loan available to the borrower.

Cash Balances

The total amount of cash in a company's account at any given time, which can be used for transactions or as a reserve.

Receivables Financing

A form of financing where a company uses its outstanding invoices or receivables as collateral to secure a loan or advance.