Assume that a 3% increase in income across the economy produces a 1% decrease in the quantity of fast food demanded. The income elasticity of demand for fast food is ________, and therefore fast food is ________
A. positive; an inferior good.
B. negative; a normal good.
C. positive; a normal good.
D. negative; an inferior good.
Answer: D
Economics
You might also like to view...
People add to their stock of human capital
A) by being lucky. B) by currying favor with powerful people. C) by going to school. D) by practicing their skills. E) in all of the above ways.
Economics
Which of the following would unions be most likely to support?
A) decreasing the legal minimum wage B) restricting immigration C) encouraging imports D) increasing the elasticity of demand for the goods their workers produce
Economics