Assume That a 9 Percent Increase in Income Across the Economy

question 303

Multiple Choice

Assume that a 9 percent increase in income across the economy produces a 6 percent decrease in the quantity demanded of good X. The coefficient of income elasticity of demand is

• A)positive, and therefore X is a normal good.
• B)negative, and therefore X is a normal good.
• C)positive, and therefore X is an inferior good.
• D)negative, and therefore X is an inferior good.