Suppose That the Income Elasticity of Demand for Good X

question 91

Multiple Choice

Suppose that the income elasticity of demand for good X is greater than 1. Other things being equal, which of the following statements is INCORRECT?

• A) Good X is a normal good.
• B) The quantity demanded of good X decreases as a consumer's income declines.
• C) A consumer buys more X as income rises, but the share of income spent on good X falls.
• D) A consumer buys more X as income rises and the share of income spent on good X also rises.

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Definitions:

Saliva and Tears

Bodily fluids produced by salivary and lacrimal glands, respectively, playing roles in digestion, oral health, and eye lubrication.

IgD

A class of antibodies that plays a role in the activation of immune cells and is found in small amounts in the blood.

IgG

IgG (Immunoglobulin G) is the most common type of antibody found in blood circulation, crucial for immune defense against pathogens.

IgM

Immunoglobulin M, a class of antibodies that is the first to be made by the body to fight a new infection.