« 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 81 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?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

“Bad,” “neutral,” and “good” mutations. “Bad,” “neutral,” and “good” mutations.
Touch the test light to the negative (–) terminal of the battery or a good engine ground to check ... Touch the test light to the negative (–) terminal of the battery or a good engine ground to check ...
Good contact feels full, confident, and deliberate and establishes a warm connection between massage ... Good contact feels full, confident, and deliberate and establishes a warm connection between massage ...
Almonds and other nuts are also good sources of protein Almonds and other nuts are also good sources of protein
The Parade of World Income The Parade of World Income
Lone-parent household income and the degree of vulnerability Lone-parent household income and the degree of vulnerability
Video: Exercise and cardiac output & Definition of stroke volume

For a complete list of videos, visit our video library