If a Product's Income Elasticity of Demand Is -1

question 125

Multiple Choice

If a product's income elasticity of demand is -1.7,then we can conclude that

• A)an increase in income will lead to an increase in demand for the product.
• B)the product is certainly a necessity.
• C)the product is a luxury good.
• D)a decrease in income will lead to an increase in demand for the product.
• E)the product is a normal good.

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Definitions:

Extended

Made longer in duration or drawn out.

Blended

Describe mixing or combining multiple elements to create a cohesive whole, often used in the context of families, learning methods, or beverages.

Community Agencies

Organizations that provide services aimed at supporting the well-being of individuals and communities, often nonprofit or governmental.

Homeless

The condition of lacking stable and permanent housing, leading to living in shelters, outdoors, or in other inadequate settings.