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:

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total liabilities divided by total assets.

Bookkeeping

Bookkeeping is the process of recording daily transactions in a consistent way, and is a key part of maintaining accurate financial records for a business.

Recordkeeping

The process of maintaining records or documents that track financial transactions, operations, or other significant events.

Transactions

Financial events that involve an exchange of value between two parties, affecting the accounting equation.