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If a 4 Percent Decrease in Income (At a Constant

Question 121

Multiple Choice

If a 4 percent decrease in income (at a constant price) results in a 2 percent decrease in the consumption of dweedles then


A) the income elasticity of demand for dweedles is negative.
B) dweedles are a necessity and a normal good.
C) dweedles are a luxury and a normal good.
D) dweedles are an inferior good.
E) the price elasticity of demand for dweedles is negative.

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