If a person’s income rises and they do not increase their consumption, we can conclude that
a. the good is not inferior.
b. their income elasticity of demand is zero.
c. the good is not normal.
d. no conclusions can be made without knowing the person’s initial income and consumption levels.
c. the good is not normal.
You might also like to view...
The absolute value of the slope of an indifference curve equals the ratio of the marginal utilities of the two goods involved
What will be an ideal response?
What happens to the Canadian monetary base if there is an excess supply of 100 million euros in the Canadian dollar:euro foreign exchange market, which the Bank of Canada purchases?
a. The Canadian monetary base falls by 100 million euros worth of Canadian dollars. b. The Canadian monetary base falls. The amount depends on the size of the money multiplier c. The Canadian monetary base might fall or rise. d. The Canadian monetary base rises by 100 million euros worth of Canadian dollars. e. The Canadian monetary base rises. The amount depends on the size of the money multiplier.