For a normal good, the income elasticity of demand is:
A) positive or negative depending on the share of income accounted for by the good.
B) always equal to 1.
C) positive if income increases and negative when income declines.
D) always positive.
D
You might also like to view...
Structural unemployment is:
A. the result of the ordinary difficulty of matching employee to employer. B. persistent, long-term unemployment. C. short-term unemployment. D. correlated with the ups and downs of the business cycle.
The effect of a recession on a company like Whirlpool Corporation is such that
A) the decline in sales is more short-lived as compared to firms that do not produce durable goods. B) profits fall less sharply as compared to firms that do not produce durable goods. C) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods. D) sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods.