Suppose Good X Has a Positive Income Elasticity of Demand

question 185

Multiple Choice

Suppose good X has a positive income elasticity of demand. This implies that good X could be
(i) a normal good.
(ii) a necessity.
(iii) an inferior good.
(iv) a luxury.

• A)(i) only
• B)(i) and (ii) only
• C)(i), (ii), and (iv) only
• D)(iii) only

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Definitions:

Family Life Cycle

A series of stages through which a family might pass over time, from singlehood to partnering, parenting, and eventually retirement.

Traditional Progression

A conventional or standard sequence of steps or development in a process or task.

Contemporary Variations

Refers to modern or current changes and adaptations in practices, designs, or ideas, reflecting the dynamic nature of evolving fields or cultures.

Family Life Cycle

A series of stages through which a family progresses over time, including marriage, parenthood, and retirement, each affecting consumer behavior.