If a Good Is Normal,its

question 26

Multiple Choice

If a good is normal,its

• A)Price elasticity of demand is positive.
• B)Income elasticity of demand is negative.
• C)Income elasticity of demand is positive.
• D)Cross-price elasticity is positive.

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Definitions:

Depreciation Expense

The allocated portion of the cost of a fixed asset that is written off each year over the asset's useful life.

Straight-line Method

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Salvage Value

The projected remaining worth of an asset upon reaching the end of its serviceable duration.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value over time.