Which of the Following Items Is Likely to Have the Highest
Which of the following items is likely to have the highest positive income elasticity of demand?
D)A plumber's service
When the income elasticity of demand for a good is negative, one can correctly conclude that:
A)the good is a normal good.
B)the good is an inferior good.
C)the good is a substitute.
D)the good is a complement.
E)total revenue will decrease when the price increases.
The income elasticity of demand _____.
A)must be negative because of the law of diminishing marginal utility
B)could be positive, negative or zero, depending on the nature of the good
C)must be positive for all goods because consumers tend to buy more at higher incomes
D)is usually zero because "you can only have so much"
E)can never be zero
Price elasticity of demand measured over a range of prices and quantities along the demand curve is _____.