If the Income Elasticity of Demand for a Good Is

question 122

Multiple Choice

If the income elasticity of demand for a good is negative, this implies that

• A) only the poor will buy the good.
• B) as incomes fall, less will be spent on the good.
• C) as incomes rise, the demand for the good will fall.
• D) the good does not obey the law of demand.

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Definitions:

Removes Carbon

The process of removing carbon typically refers to extracting carbon dioxide (CO2) from the atmosphere or emissions, a critical action for reducing global warming and climate change.

Atmosphere

The layer of gases surrounding a planet, which for Earth is composed primarily of nitrogen and oxygen and protects it from the sun's radiation and space debris.

Photosynthesis

The process by which green plants, algae, and some bacteria convert light energy into chemical energy stored in glucose.

Carbon

A chemical element with symbol C and atomic number 6, essential to all known life forms and the basis of organic chemistry.