With an income elasticity of demand of 0.5,cigarettes are an example of
A)a normal good
B)an inferior good
C)irrational demand
D)complements to health care
E)unitary elasticity

Name: With an income elasticity of demand of 0.5,cigarettes are an example of A)a normal good B)an inferior good C)irrational demand D)complements to health care E)unitary elasticity
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cigarettes are a normal good because the income elasticity of demand is positive (0.5), indicating that demand increases as income increases.

With an Income Elasticity of Demand of 0