Question
Suppose income increases by 20 percent and, as a result, the quantity of a particular brand...
Suppose income increases by 20 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) decreases by 4 percent.
The income elasticity of demand for this brand of car is _____?
This particular brand of automobile is inferior or normal goo
In another example, suppose market research shows that a particular brand of truck is a normal good and a luxury.
If so, then the income elasticity of demand for this truck is?
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