A positive income elasticity of demand for a good means:
a. it is a substitute

b. it is a complement.
c. it is a normal good.
d. it is an inferior good.

c

Economics

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Firms exist because of the low cost associated with creating complete contracts

Indicate whether the statement is true or false

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If the income elasticity of demand is negative, this means that the good is

a. an inferior good b. sold at a lower than equilibrium price c. provided by a monopoly producer d. provided by competitive producers e. a normal good

Economics