Question
58.Assume that a 4 percent increase in income in the economy produces a 3 percent increase in the quantity demanded of good X. The coefficient
58.Assume that a 4 percent increase in income in the economy produces a 3 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is:
A.negative and therefore X is a normal good.
B.positive and therefore X is a normal good.
C.negative and therefore X is an inferior good.
D.positive and therefore X is an inferior good.
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
