If the income elasticity of demand for tea is 1,3, then this implies that tea is: (2) (1) An inferior good. (2) A luxury good. (3) A necessity. (4) A non-durable good.
If the income elasticity of demand for tea is 1,3, then this implies that tea is: (2) (1) An inferior good. (2) A luxury good. (3) A necessity. (4) A non-durable good.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 1QR
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Question
Q.1.10
If the income elasticity of demand for tea is 1,3, then this implies that tea is:
(2)
(1)
An inferior good.
(2)
A luxury good.
(3)
A necessity.
(4)
A non-durable good.
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