Chapter 6 Elasticity
b. normal vs. inferior good. normal good – when EI > 0. This value is obtained from the fact that Income ↑( Demand ↑ [or Qd ↑ at every price ]. Inferior good – when EI < 0. This value is obtained from the fact that Income ↑( Demand ↓ [or Qd ↓ at every price ]. c. Luxury or Necessity ................
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