If the Income Elasticity of Demand for Good a Was

question 260

Multiple Choice

If the income elasticity of demand for good A was 3.9 and the income elasticity of demand for B was 0.2:

• A)​Both good A and good B are normal.
• B)​Both good A and good B are inferior.
• C)​Good A is normal and good B is inferior.
• D)​Good A is inferior and good B is normal.

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Definitions:

Greed Is Good

A phrase popularized by the film "Wall Street" (1987) to encapsulate the idea that unbridled financial self-interest and the pursuit of personal wealth are positive forces in society.

Wall Street Trader

An individual who buys and sells stocks or other financial instruments on Wall Street, the heart of the financial district in New York City.

Roots

A television miniseries based on Alex Haley's 1976 novel "Roots: The Saga of an American Family," tracing the ancestry of the author back to Africa and through seven generations.

Wealth And Consumption

Refers to the abundance of valuable resources or material possessions and the process of using goods and services.