If a Product Is a Normal Good,then Its Income Elasticity

question 181

Multiple Choice

If a product is a normal good,then its income elasticity of demand is

• A) zero.
• B) positive.
• C) negative.
• D) indeterminate.
• E) greater than 1.

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Definitions:

Horizontal Band Saw

A type of sawing machine with a band saw blade positioned horizontally, used for cutting materials like metal or wood into precise pieces.

Percent Markup

A percentage added to the cost price of goods to calculate the selling price.

Printer/Copier/Fax Machine

Office equipment that combines the functionalities of printing, copying, and faxing into a single device.

Dollar Markup

The difference between the cost of a good or service and its selling price, expressed in dollar terms.