Good a Has an Income Elasticity Equal to 1

question 51

Multiple Choice

Good A has an income elasticity equal to 1.0 and a cross price elasticity with respect to Good B of -0.6. Then:

• A)​Good A is an inferior good and Goods A and B are substitutes.
• B)​Good A is an inferior good and Goods A and B are complements.
• C)​Good A is a normal good and Goods A and B are substitutes.
• D)​Good A is a normal good and Goods A and B are complements.

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Definitions:

Microscope

An optical instrument used for viewing very small objects, such as mineral samples or living cells, typically magnified several hundred times.

Membranous Envelope

A lipid bilayer that surrounds certain viruses and organelles, providing protection and assisting in processes like fusion and entry into cells.

Protein Capsid

A protein capsid is the protein shell of a virus, enclosing its genetic material. It plays a key role in the virus's ability to infect host cells.

Protein Spike

A protrusion on the surface of some viruses, such as the coronavirus, which facilitates attachment and entry into host cells.