Business, 14.02.2020 01:22 Coolcatfurzy

Data collected from the economy of Pokerville reveals that an 18% decrease in income leads to the following changes: • A 6% decrease in the quantity of chips demanded • A 17% increase in the quantity of clubs demanded • A 29% decrease in the quantity of houses demanded Compute the income elasticity of demand for each good and use the dropdown menus to complete the first column in the following table. Then, based on its income elasticity, indicate whether each good is a normal good or an inferior good. (Hint: Be careful to keep track of the direction of change. The sign of the income elasticity of demand can be positive or negative, and the sign confers important information.) Good Income Elasticity of Demand Normal or Inferior Good Chips Clubs Houses Which of the following three goods is most likely to be classified as a luxury good ? Clubs Houses Chips

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