A Product That Has a Negative Income Elasticity of Demand

question 87

Multiple Choice

A product that has a negative income elasticity of demand is ________ good.

• A) a complementary
• B) a substitute
• C) a normal
• D) an inferior
• E) a negative

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Definitions:

Settlement of Mid-America

The historical process of populating and developing the central regions of the United States, involving migration, cultivation of land, and establishment of communities.

Discovery of Gold

The finding of gold deposits, often leading to gold rushes and mass migrations of people seeking wealth, significantly impacting local economies and societies.

Transcontinental Railroad

A continuous network of railway trackage that crosses a continental land mass with terminals at different oceans or continental borders.

Mexican War

A conflict between the United States and Mexico from 1846 to 1848, resulting in the U.S. acquisition of territories that include present-day California, Arizona, and New Mexico.