If the Income Elasticity of Demand for a Good Is

question 9

Multiple Choice

If the income elasticity of demand for a good is negative

• A) changes in income have no effect on consumption of the good.
• B) a decrease in income causes consumption of the good to fall.
• C) an increase in income causes consumption of the good to fall.
• D) consumption of the good may increase or decrease without any change in income.
• E) and if the good's price falls, income also falls.

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