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

Question

Quizplus · Accepted Answer

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

The Demand Curve for a Good with an Income Elasticity