If the Income Elasticity for a Particular Good Is Negative

question 57

Multiple Choice

If the income elasticity for a particular good is negative, then:

• A)the good is a normal good.
• B)as income increases, consumers will tend to purchase more of the good.
• C)as income increases, consumers will tend to purchase less of the good.
• D)the good is a luxury good.

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Definitions:

Qualified Expenses

Costs recognized by the IRS for specific tax benefits, such as education-related expenses eligible for tax credits.

Dependent

An individual, usually a child or spouse, who relies on another person for more than half of his or her financial support and qualifies for potential tax benefits on the caregiver's tax return.

Tuition

The fee paid for instruction or teaching, typically charged by educational institutions for course enrollment.

Meal Plan

A pre-paid account or arrangement typically offered by institutions like colleges that allows students to pay in advance for meals at on-campus dining facilities.