Assume That a Three Percent Increase in Income Results in a Four

question 6

Multiple Choice

Assume that a three percent increase in income results in a four percent decrease in the quantity demanded of a good.What is the income elasticity of demand for the good,and what type of good is it

• A)negative, and therefore the good is an inferior good
• B)negative, and therefore the good is a normal good
• C)positive, and therefore the good is an inferior good
• D)positive, and therefore the good is a normal good

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