=

question 96

Multiple Choice

=

---

Definitions:

Income Elasticity

The degree to which consumer demand for a product shifts following alterations in their financial earnings.

Inferior

A type of good for which demand decreases as the income of consumers increases.

Normal Good

A good whose demand increases as the income of consumers increases, and vice versa.

Normal Good

A type of good for which demand increases as the income of consumers increase, demonstrating a positive correlation between income and demand.