Answered: 55. If the income elasticity is greater…

55. If the income elasticity is greater than one, the commodity is A. O Necessity item B. O Luxury item C. O Inferior good D. O None

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...

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55. If the income elasticity is greater
than one, the commodity is
A. O Necessity item
B. O Luxury item
C. O Inferior good
D. O None

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