6) The demand curve for a good with an income elasticity of less than one 6) A) will be upward sloping only if the substitution effect outweighs the...
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Hello, just was wondering how this graph would actually look and how the income and sub effect are taken into

account for this question.

Thank you!Screen Shot 2019-10-14 at 7.36.31 PM.png

Screen Shot 2019-10-14 at 7.36.31 PM.png

6) The demand curve for a good with an income elasticity of less than one
6)
A) will be upward sloping only if the substitution effect outweighs the income effect.
B) indicates a normal good.
C) must be downward sloping.
D) will be upward sloping only if the income effect outweighs the substitution effect.
E) must be upward sloping.

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The correct answer is: b) indicates a normal good If income elasticity of... View the full answer

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