Use income elasticity to distinguish a normal good

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8) Use income elasticity to distinguish a normal good from an inferior good. For a normal good, the income elasticity of demand will be a) elastic, but for an inferior good, the income elasticity will be inelastic. b) negative, but for an inferior good, the income elasticity of demand will be positive. c) positive or negative, but for an inferior good, the income elasticity will be zero. d) positive, but for an inferior good, the income elasticity of demand will be negative. Answer: D 9) Is it possible to tell from the income elasticity of demand whether a product is a luxury good or a necessity? 10) Price elasticity of demand measures the responsiveness of: 11) Bar owners often offer lower beer prices to women than they do to men. This will enhance bar revenues if:
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