a. a normal good; positiveb. an inferior good; positivec. an inferior good; negatived. a normal good, negative If an increase in income results in a decrease in the quantity demanded for aproduct, the product isdemand is, and the value of the income elasticity of

Inventory, equipment, materials, and finished products are also forms of goods. The products that…

Answered: If an increase in income results in a…

If an increase in income results in a decrease in the quantity demanded for a product, the product is - and the value of the income elasticity of demand is

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

a. a normal good; positive

b. an inferior good; positive

c. an inferior good; negative

d. a normal good, negative

If an increase in income results in a decrease in the quantity demanded for a
product, the product is
demand is
, and the value of the income elasticity of

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