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Question: Suppose a 4% increase in income in the economy leads to an 8% increase in soft drink consumption....

Show transcribed image text Suppose a 4% increase in income in the economy leads to an 8% increase in soft drink consumption. Then the income elasticity of demand is: negative, so soft drinks are an inferior good. negative, so soft drinks are a normal good. positive, so soft drinks are a normal good. positive, so soft drinks are an inferior good.

Suppose a 4% increase in income in the economy leads to an 8% increase in soft drink consumption. Then the income elasticity of demand is: negative, so soft drinks are an inferior good. negative, so soft drinks are a normal good. positive, so soft drinks are a normal good. positive, so soft drinks are an inferior good.