Q
Inferior goods have _________ and luxury goods have _________?
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A
A. Negative income elasticity income elasticity greater than 1
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B
B. Income elasticity greater than 1, negative income elasticities
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C
C. Positive income elasticities, negative income elasticities
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D
D. None of the above
Correct Answer:
A. A. Negative income elasticity income elasticity greater than 1