An Inferior Good Has

question 95

Multiple Choice

An inferior good has

• A)a positive income elasticity of demand.
• B)a negative income elasticity of demand.
• C)an income elasticity of demand greater than zero but less than 1.
• D)a positive income elasticity of demand and a price elasticity of demand greater than 1.
• E)a negative price elasticity of demand.

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Definitions:

Transactions Affect

Refers to the impact that business transactions have on the financial statements, altering the balances of accounts.

Time Period

In accounting, a specific duration for which financial statements are prepared, commonly a month, quarter, or year.

Unearned Revenues

Money received for services or products that have yet to be delivered or performed; recognized as a liability until the revenue is earned.

Liability Account

An account on a company's balance sheet that represents debts or obligations that the business needs to pay off in the future.