Show that the following statements are true: a) An inferior good has a negative income elasticity of

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Show that the following statements are true:
a) An inferior good has a negative income elasticity of demand.
b) A good whose income elasticity of demand is negative will be an inferior good.

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 04:51 AM

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Show that the following statements are true: a) An inferior good has a negative income elasticity of

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a and must be greater than zero In addition assume income ...View the full answer

Microeconomics

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