If a Good Is Normal the Income Elasticity of Demand

question 120

Multiple Choice

If a good is normal the income elasticity of demand must be

• A)Positive and greater than 1
• B)Merely positive (not necessarily greater than 1)
• C)Zero
• D)Negative

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest.

Expenses

Costs incurred in the process of generating revenue, typically including items like rent, salaries, and utilities.

Source Documents

Original records and documents containing the details that support or verify the transactions entered in an accounting system.