The Type of Elasticity of Demand That Is Most Commonly

question 48

Multiple Choice

The type of elasticity of demand that is most commonly positively valued but that can be negative at times is called:

• A)income elasticity of demand and it is negative when the good is a normal good.
• B)income elasticity of demand and it is negative when the good is an inferior good.
• C)price elasticity of demand and it is negative when the slope of the demand curve is negatively sloped.
• D)None of the above.

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Definitions:

Work of Art

An artifact or performance that has been created with artistic intent, often appreciated for its beauty or emotional power.

Sanskrit

An ancient Indic language of India, in which the Hindu scriptures and classical Indian epic poems are written and from which many northern Indian languages are derived.

Nirvana

In Buddhism, the ideal state of peacefulness. Literally, the term means “extinction” and refers to the elimination of suffering through the elimination of selfish craving.

Presupposes

Refers to something assumed or taken for granted in advance as a basis for argument or discussion.