« previous next »

Author Question: If a good has an income elasticity of demand greater than 1, one might classify that good as A) a ... (Read 34 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
on: Jul 1, 2018
If a good has an income elasticity of demand greater than 1, one might classify that good as
 
  A) a necessity.
  B) a luxury.
  C) unusual.
  D) inelastic.

Question 2

If the Engel curve for a good is upward sloping, the demand curve for that good must be downward sloping.
 
  What will be an ideal response?
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


bobsmith

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

True. If the Engel curve is upward sloping, the good is normal. As a result, the income effect will reinforce the substitution effect and guarantee a downward-sloping demand curve.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Attention and memory are in demand during circle time. Attention and memory are in demand during circle time.
A typical good oxygen sensor waveform as displayed on a digital storage oscilloscope. Look for ... A typical good oxygen sensor waveform as displayed on a digital storage oscilloscope. Look for ...
Economic recession in 2008 saw a small decrease in demand Economic recession in 2008 saw a small decrease in demand
Avocados are a good source of pantothenic acid, dietary fiber, vitamin K Avocados are a good source of pantothenic acid, dietary fiber, vitamin K
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Percentage of higher-income Canadian households Percentage of higher-income Canadian households
Video: HDL (high density lipoprotein)

For a complete list of videos, visit our video library