Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products.If you expect that the economy is headed for a long recession, you would advise people to look for jobs in an industry with
A)a high positive income elasticity coefficient such as 5.
B)a low positive income elasticity coefficient such as 0.8.
C)a "high" negative income elasticity coefficient such as -4.
D)a "low" negative income elasticity coefficient such as -0.2.

Question

Quizplus · Accepted Answer

A high negative income elasticity coefficient indicates that demand for the industry's products will not decrease significantly even if there is a decrease in income levels. This makes it a more stable industry to work in during a recession.

Suppose You Have Surveyed a Few Industries and Obtained Information