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Camila Arellano
on Oct 12, 2024

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If the income elasticity for Ramen Noodles is -3.0,we may conclude that Ramen Noodles are _________.

A) a normal good
B) an inferior good
C) both a normal good and an inferior good
D) neither a normal good nor an inferior good

Income Elasticity

A measure of how much the demand for a product changes in response to changes in consumer income.

Inferior Good

A type of good for which demand decreases when consumer income rises, contrasting with normal goods.

  • Distinguish normal from inferior goods using income elasticity as a criterion.
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jeffry fredericOct 15, 2024
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