Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which one of the following is NOT a characteristic of a normal good? A. It has a positive income elasticity of demand. B. A price
Which one of the following is NOT a characteristic of a normal good?
A. It has a positive income elasticity of demand.
B. A price fall will lead to a rise in demand.
C. The substitution and income effects of a price change work in opposite
directions.
D. The substitution effect of a price fall has a positive effect on demand.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started