Question
Question: Suppose the income elasticity of demand is -0.5 for good X. This implies that a 5% decrease in income will cause the quantity demanded
Question: Suppose the income elasticity of demand is -0.5 for good X. This implies that a 5% decrease in income will cause the quantity demanded of good X to
Group of answer choices
A. decrease by 10% and X is a normal good.
B. decrease by 2.5% and X is a normal good.
C. increase by 2.5%, and X is an inferior good.
D. increase by 10% and X is an inferior good.
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The Chinese Economy Transitions And Growth
Authors: Barry Naughton
1st Edition
0262640643, 9780262640640
