If the income elasticity of demand for a good is negative, this implies that
a. only the poor will buy the good.
b. as incomes fall, less will be spent on the good.
c. as incomes rise, the demand for the good will fall.
d. the good does not obey the law of demand.
C
Economics
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In the basic closed-economy ISLM model, the goods market can be described by the
A) consumption function. B) investment function. C) government spending and tax. D) goods market equilibrium condition. E) all of the above.
Economics
If a good is normal and income increases, then
A. the demand curve will shift to the right. B. the supply curve will shift to the left. C. the supply curve will shift to the right. D. the demand curve will shift to the left.
Economics