If the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction, then this good will have an income elasticity ____ 1, and it is a(n) ____ good. ? equal to; normal ? greater than; inferior ? greater than; normal ? less than; normal
Added by Wendy M.
Close
Step 1
The percentage change in the quantity demanded of a good is greater than the percentage change in income. This means that the demand for the good is more responsive to changes in income. Show more…
Show all steps
Your feedback will help us improve your experience
Godha Ram and 77 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
If a decrease in income increases the demand for a good, what is the good called? a. an inferior good b. a normal good c. a complementary good d. a substitute good
Brooke B.
Good X is a normal good. If the average income of those who buy good X rises, the _____________ curve for good X will shift ____________ resulting in a(n) _____________ in the equilibrium price of X and a(n) ____________ in the equilibrium quantity of X
Andrew D.
Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a good determine what type of good it is ?
Haricharan G.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Watch the video solution with this free unlock.
EMAIL
PASSWORD