Asked by
SEGUN MAKINDE
on Oct 26, 2024
Verified
If your income increases and your consumption of bagels increases,other things equal,bagels are considered a(n) _____ good.
A) negative
B) positive
C) inferior
D) normal
Income Elasticity
A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all other factors constant.
Normal Good
A good for which a rise in income increases the demand for that good—the “normal” case.
- Absorb the fundamentals of income elasticity of demand and its implications for distinguishing between normal and inferior goods.
- Leverage comprehension of elasticity to predict how demand or consumption responds to pricing adjustments of related goods or shifts in income.
Verified Answer
MF
Learning Objectives
- Absorb the fundamentals of income elasticity of demand and its implications for distinguishing between normal and inferior goods.
- Leverage comprehension of elasticity to predict how demand or consumption responds to pricing adjustments of related goods or shifts in income.
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