An Income Elasticity Coefficient of −1

question 121

True/False

An income elasticity coefficient of −1.8 means the product is a normal good.

---

Definitions:

Consumption

The act of using goods and services by households or individuals, typically regarded as a primary economic activity.

Production

Production involves the process of creating, manufacturing, or enhancing goods and services.

Consumer Savings

Refers to the amount of money that individuals set aside from their disposable income rather than using it for consumption.

Financial Rewards

Monetary benefits given to employees or stakeholders as an incentive or recognition for their performance or investment.