Question: What do we call a good with income elasticity less than zero?

What do we call a good with income elasticity less than zero?

Step by Step Solution

★★★★★

3.34 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

We will call that goods are inferior good Income elasticity is less than 0 m... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1019-B-C-A-C-P-A(3999).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

A luxury is defined to be a good with income elasticity greater than 1. Explain what this means without the technical jargon. Is it possible for all the goods you consume to be luxuries? Why or why...

Q:

What do we call a group of employees who work at similar levels in different departments?

Q:

What do we call an exchange rate requiring delivery of a traded currency within two business days?

Q:

___1. Cross-price elasticity measures whether: A . goods are normal or inferior. B. two goods are substitutes or complements. C. demand is elastic or inelastic. supply is steeper than demand or vice...

Q:

Directions:Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best in each case and write the correct letter of your...

Q:

Income elasticity of demand is Part 2 A . the percentage change in quantity demanded divided by the percentage change in income. B . the percentage change in income divided by the percentage change...

Q:

. Define the following terms: total revenue, total cost, profit, explicit costs, implicit costs, economic profit, accounting profit, production function, marginal product, diminishing marginal...

Q:

Question 1 : [ Answer all question below using given case studies a Why do you think UPS is embracing sustainable technologies? [4 Marks] b. How is UPS developing a sustainable MIS infrastructure? [4...

Q:

For a normal good, the income elasticity of demand will be A. positive or negative, but for an inferior good, the income elasticity will be zero. O B. inelastic, but for an inferior good, the income...

Q:

Economists use game theory to predict the behavior of oligopolists. Which of the following is crucial for the success of the analysis? A. Make sure the payoffs reflect the true payoffs of the...

Q:

Fiona's Store had the following transactions during December, the last month of the accounting period (20 points): Sold merchandise on credit for $6,000, cost $4.000 terms I 10. n 30. 3 Purchased...

Q:

5/21 7 Perform the indicated operation by hand.

Q:

a. Describe what is meant by augmented reality and virtual reality. b. Describe how augmented reality and virtual reality could affect society in the near future.

Q:

Continuing with Exercise 2.5, what are the competitive equilibrium prices, where one price is normalized to equal one? (Hint: See Solved Problem 10.4.) M

Q:

Lets consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans. In...

Q:

Lets consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans. In...

Q:

If the tax rate is 40 percent, compute the before tax real interest rate and the after-tax real interest rate in each of the following cases. a. The nominal interest rate is 10 percent, and the...

Q:

Four years ago, you acquired a 30-year loan of $140,100, charging 6.6% annual interest, compounded monthly, and requiring monthly payments. At this time, interest rates on 20-year loans have dropped...

Q:

1. Assume that the readings at freezing on a bundle of thermometers are normally distributed with a mean of 0C and a standard deviation of 1.00C. A single thermometer is randomly selected and tested....

Q:

A project that provides annual cash flows of $15,800 for 8 years costs $84,292 today. Required: (a)If the required return is 8 percent, what is the NPV for this project? (Click to select)...