Would you expect the income elasticity of demand for Cadillacs to be positive or negative? Why is this true?
What will be an ideal response?
The income elasticity of demand for Cadillacs should be positive because Cadillacs are a normal good. When income rises, the demand for Cadillacs will rise as well.
Economics
You might also like to view...
The price and wage freeze imposed by President Nixon were totally successful in eliminating inflationary pressures in the United States
Indicate whether the statement is true or false
Economics
The marginal revenue curve for a monopolist is the same as its demand curve
a. True b. False Indicate whether the statement is true or false
Economics