If a Good Is Inferior,then It Has an Income Elasticity

question 164

Multiple Choice

If a good is inferior,then it has an income elasticity of demand that is

• A) equal to zero.
• B) greater than zero.
• C) less than zero.
• D) greater than one.
• E) undefined.

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Definitions:

Linkage Components

Various mechanical parts that connect together to transmit motion in order to perform a specific task.

Tie-rods

Components in a vehicle's steering system that help transfer the movement from the steering rack or center link to the steering knuckle, thus making the wheels turn.

Power Steering Hoses

High-pressure hoses that convey hydraulic fluid between the power steering pump and the steering gear to assist in vehicle steering.

Pressurized Fluid

Fluid under greater pressure than the surrounding environment, often used in hydraulic systems to transmit power.