Suppose Good X Has a Negative Income Elasticity of Demand

question 88

Multiple Choice

Suppose good X has a negative income elasticity of demand.This implies that good X is

• A)a normal good.
• B)a necessity.
• C)an inferior good.
• D)a luxury.

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Definitions:

NSF Cheque

A cheque that has been returned by a bank as unpaid because the account on which it was drawn did not have sufficient funds, often incur fees.

Bank Service Charges

Fees charged by banks for the use of their services, such as account maintenance fees, transaction fees, and overdraft charges.

Outstanding Cheques

Checks that have been written and recorded by a company but have not yet been cleared or deducted from the bank account balance.

Bank Reconciliation

This is a process of matching and comparing an organization's financial records with the bank statements to ensure consistency and accuracy.