Introduction to Economics 1 Deneme Sınavı Sorusu #752204

I. Demand for the luxury good increases. II. Demand for the normal good decreases. III. Demand for the inferior good decreases. Which of the above is true according to Engel curves, which illustrate the relationship between consumer demand and household income?


I

II

I and II

I and III

II and III


Yanıt Açıklaması:

Engel curves, named after 19th Century German statistician Ernst Engel, illustrate the relationship between consumer demand and household income. Engel curves for normal goods slope upwards – the flatter the slope the more luxurious the good, and the greater the income elasticity. That is, demand for the luxury good rises much more. In contrast, Engel curves for inferior goods have a negative slope. The correct answer is D.

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