a) b) c) d) Which of the following statements is TRUE? For an inferior good, an...

 

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a) b) c) d) Which of the following statements is TRUE? For an inferior good, an increase in income causes the good's budget share to fall. For an inferior good, as income rises, less of the consumers' income is spent on the good. If a good is a necessity, an increase in income causes that good's budget share to rise. For a luxury good, an increase in income causes that good's budget share to fall a) b) c) d) Which of the following statements is TRUE? For an inferior good, an increase in income causes the good's budget share to fall. For an inferior good, as income rises, less of the consumers' income is spent on the good. If a good is a necessity, an increase in income causes that good's budget share to rise. For a luxury good, an increase in income causes that good's budget share to fall

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Answer Explanation In case of inferior goods the income eff... View the full answer