Author Question: If a product's income elasticity of demand is -1.7, then we can conclude that (Read 36 times)

mustachegiraffe · **on:** Oct 12, 2022

Question 1

When calculating the price elasticity of demand for some product, we ignore the ________ of the change, and focus only on the ________ of the measure.
◦ direction; absolute value
◦ direction; percentage change
◦ source; absolute value
◦ source: percentage change
◦ absolute value; percentage change

Question 2

If a product's income elasticity of demand is -1.7, then we can conclude that
◦ the product is a normal good.
◦ an increase in income will lead to an increase in demand for the product.
◦ the product is certainly a necessity.
◦ the product is a luxury good.
◦ a decrease in income will lead to an increase in demand for the product.

ladan86 · **Reply #1 on:** Oct 12, 2022

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