If the income elasticity of demand is 0.5, the good is

a. a luxury.
b. a normal good (but not a luxury).
c. an inferior good.
d. a Giffen good.

b

Economics

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Refer to Figure 4.8. If half of your friends go to the beach and half go to the park, and you decide to go to the park, then

A) your friends at the beach will switch to the park. B) you and your friends at the park will switch to the beach. C) your friends at the beach will switch to the park and your friends at the park will switch to the beach. D) your friends will all stay where they are.

Economics

When negative externalities are present, it leads to an underallocation of resources in that area relative to that which is socially desirable

a. True b. False Indicate whether the statement is true or false

Economics