Suppose Good X Has a Negative Income Elasticity of Demand

question 88

Multiple Choice

Suppose good X has a negative income elasticity of demand.This implies that good X is

• A)a normal good.
• B)a necessity.
• C)an inferior good.
• D)a luxury.

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Definitions:

Ice and Snow

Frozen forms of water, with ice being a solid state and snow being a form of precipitation composed of ice crystals.

Liquid Water

The liquid phase of water, which is vital for all known forms of life.

Volcano

A geological formation through which magma, ash, and gases from the Earth's interior are expelled to the surface.

Composite Volcano

A type of volcano constructed from multiple layers of hardened lava, tephra, and volcanic ash, typically characterized by explosive eruptions.