The demand curve for a good with an income elasticity of less than one
A) will be upward sloping only if the substitution effect outweighs the income effect.
B) must be upward sloping.
C) must be downward sloping.
D) indicates a normal good.
E) will be upward sloping only if the income effect outweighs the substitution effect.

Question

Quizplus · Accepted Answer

The Answer of The demand curve for a good with an income elasticity of less than one
A) will be upward sloping only if the substitution effect outweighs the income effect.
B) must be upward sloping.
C) must be downward sloping.
D) indicates a normal good.
E) will be upward sloping only if the income effect outweighs the substitution effect.

The Demand Curve for a Good with an Income Elasticity