Suppose Good X Has a Positive Income Elasticity of Demand

question 234

Multiple Choice

Suppose good X has a positive income elasticity of demand.This implies that good X could be
(i) A normal good.
(ii) A necessity.
(iii) An inferior good.
(iv) A luxury.

• A)(i)only
• B)(i)and (ii)only
• C)(i), (ii),and (iv)only
• D)(iii)only

---

Definitions:

Replenishment Cycle

The process or time it takes to replenish inventory in a supply chain, from ordering to receiving goods.

Expected Shortage

The anticipated deficiency in quantity or supply of a product or resource relative to the expected demand for that product or resource.

Safety Inventory

Additional stock kept to mitigate the risk of stockouts and production halts due to fluctuations in demand and supply chain disruptions.

Supply Chain Manager

An expert in charge of supervising and directing the strategy and operations of a corporation's supply chain and logistics.