If the income elasticity of demand (YED) for a good is 0.9, then the good is:
(a) An Inferior good;
(b) A Normal good;
(c) A Luxury or Superior good;
(d) The above information is incomplete and therefore no judgement is possible.
Ans: (b) A Normal good;
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All else equal, a decrease in the level of imports allowed into the United States ________ the demand for goods and service produced in the United States
A) does not affect B) decreases C) increases D) increases or decreases
An example of a randomized controlled experiment is when
A) households receive a tax rebate in one year but not the other. B) one U.S. state increases minimum wages and an adjacent state does not, and employment differences are observed. C) random variables are controlled for by holding constant other factors. D) some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared holding constant other factors.