The Income Elasticity of Demand for Used Cars Is Less

question 139

Multiple Choice

The income elasticity of demand for used cars is less than zero,so used cars are

• A)an inferior good.
• B)a normal good.
• C)an inelastic good.
• D)a perfectly inelastic good.
• E)a substitute good.

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Definitions:

Time Series

A forecasting technique that uses a series of past data points to make a forecast.

Cycles

Patterns in the data that occur every several years.

Random Variations

Unpredictable fluctuations in data or processes that do not follow a discernible pattern or trend.