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Business, 11.06.2020 18:57 s131845

Suppose the income elasticity of demand is -0.5 for good X. This implies that a 5% decrease in income will cause the quantity demanded of good X to a. increase by 2.5%, and X is an inferior good. b. decrease by 2.5% and X is a normal good. c. increase by 10% and X is an inferior good. d. decrease by 10% and X is a normal good.

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Suppose the income elasticity of demand is -0.5 for good X. This implies that a 5% decrease in incom...
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