If a Good Has an Income Elasticity of 1

question 127

Multiple Choice

If a good has an income elasticity of 1.83,then it:

• A) is a normal good, and a necessity.
• B) is an inferior good, and a necessity.
• C) probably has a lot of close substitutes available.
• D) is a luxury.

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Definitions:

Agent

An individual authorized to act on behalf of another person or entity, often in business transactions or negotiations.

Simple Delivery Contract

An agreement focusing on the delivery of an item or service without complicated terms.

Agent Deliver

An act where an individual or entity designated as an agent carries out the delivery of goods or documents on behalf of another party.

Acknowledged Sale

A sale in which the parties involved officially recognize the transaction, often through a formal acknowledgment document.