If a Good Is a Necessity the Income Elasticity of Demand

question 112

Multiple Choice

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

• A)Positive
• B)Zero
• C)Negative but less negative than -1
• D)Negative and more negative than -1

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Definitions:

Cafeteria-Style Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefits, akin to selecting food in a cafeteria.

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis without violating any given constraints.

T-test

A statistical test used to compare the means of two groups or samples, often employed to determine if there are significant differences between them.

Dependent Means

Refers to the average values that are influenced by other variables in an experimental setup.