During recessions,when some workers lose their jobs and have lower incomes,sales of durable goods (goods with a life expectancy of 3 years or more)decline.Apparently,durables are:
A)substitutes.
B)normal goods.
C)complements.
D)inferior goods.

Question

Quizplus · Accepted Answer

Income elasticity is the percentage change in quantity consumed when there is a one percent change in income.For normal goods,an increase in income leads to an increase in consumption.

During Recessions,when Some Workers Lose Their Jobs and Have Lower