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
Economics
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