Assume the Income Elasticity for a Particular Good Has Been

question 51

True/False

Assume the income elasticity for a particular good has been estimated to be -0.68.Based on this information,we can infer that the good is inferior and a necessity.

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Definitions:

Dependent Variable

In an experiment, the variable that is observed and measured for change, thought to be influenced by the independent variable.

Illusory Correlation

The belief in a connection between two variables despite the absence of any actual relationship.

Negatively Correlated

Describes a relationship where one variable increases as the other decreases, or vice versa.

Positively Correlated

A linkage between two elements where the elevation of one element correlates with the elevation of the other.