For a Normal Good,the Income Elasticity of Demand Is

question 101

Multiple Choice

For a normal good,the income elasticity of demand is:

• A)positive or negative depending on the share of income accounted for by the good.
• B)always equal to 1.
• C)positive if income increases and negative when income declines.
• D)always positive.

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Definitions:

Idiosyncrasy Credit

The leeway or toleration a group affords to a member with established credibility to deviate from group norms without severe sanction.

Expectation-States Theory

Expectation-States Theory is a sociological theory that explains how individuals form expectations of others in a group and how these expectations influence interactions and hierarchies.

Diffuse

To spread or cause to spread over a wide area or among a large number of people.

Specific

refers to something clearly defined or identified, often used to describe a particular detail, requirement, or characteristic.