Economists Estimate That the Income Elasticity of Demand for Women's

question 1

Multiple Choice

Economists estimate that the income elasticity of demand for women's hairstyling services is +3.5,suggesting that ________.

• A) hairstyling services are an inferior good and quantity demanded will decrease as incomes increase
• B) hairstyling services are an inferior good and quantity demanded will increase as incomes increase
• C) hairstyling services are a normal good and quantity demanded will decrease as incomes increase
• D) hairstyling services are a normal good and quantity demanded will increase as incomes increase

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Definitions:

Transform Boundary

A type of tectonic plate boundary where plates slide past each other horizontally, causing seismic activity.

Caribbean Region

A geographical area comprising the Caribbean Sea, its islands (including the West Indies), and the surrounding coasts located southeast of the Gulf of Mexico and the North American mainland.

Caribbean Plate

A mostly oceanic tectonic plate underlying Central America and the Caribbean Sea off the north coast of South America.

Transform Fault

A type of fault where two tectonic plates slide past each other horizontally, often associated with earthquakes.