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:

Precommitments

Voluntary actions or pledges made in advance by an individual or organization to restrict future choices, usually to avoid impulsive behavior or to stick to a strategic plan.

Behavioral Economists

Professionals who explore how various psychological, cognitive, emotional, cultural, and social factors affect the economic decisions made by both individuals and institutions.

Fair Trade Cocoa

Cocoa produced and sold under standards designed to support fair pricing and sustainable practices for small-scale cocoa farmers.

Myopia

A condition or behavior characterized by a lack of foresight or planning for the future, often focusing only on short-term benefits.