--%>

Rang of income elasticities of demand

The income elasticities of demand (μ) for items which most people consider as luxuries would possibly be into the range: (1) – ∞ < μ < one. (2) – 1 < μ < zero. (3) μ = zero. (4) 0 < μ < 1. (5) 1 < μ < ∞.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Investor Optimism for Loanable Funds An

    An increase within investor optimism will cause: (w) interest rates to rise. (x) slower technology advances. (y) slumps in business construction. (z) interest rates to fall. Please choose the right answer from abov

  • Q : Justified investment by paying income

    When the price of each of the given assets is $10,000 and the interest rate is 10%, then investment is most justified for: (1) a perpetuity paying $900 annually. (2) a machine with a 3 year life which can be leased to an outsider for $10 per day. (3) an income stream

  • Q : Importance of study of the model of

    The study of the model of pure competition is very significant since this: (w) explains the behavior of most U.S. firms. (x) gives the underpinnings for supply and demand. (y) helps explain why government economic policy is essential. (z) gives a rati

  • Q : Setting a price in profit-maximizing

    This profit-maximizing firm as in demonstrated figure will set a price where: (1) P > MC = MR. (2) MR > MC = P. (3) MR = P > MC. (4) MR = P > MC. (5) P < MC < MR.

    Q : Tax on a good tends to make The tax on

    The tax on a good tends to make: (i) Inflationary pressure the govt. can disperse by cutting its spending. (ii) The wedge among prices buyers pay and the prices sellers obtain. (iii) Rises in supply from the viewpoint of buyers. (iv) More quick transa

  • Q : Occurrence of equilibrium output of firm

    Economists frequently suppose that equilibrium output for any firm arises where: (w) revenue is maximized. (x) revenue is rising. (y) profit is rising. (z) profit is maximized. Can someone explain/help me with best

  • Q : Agency Shop Agreements Can someone

    Can someone please help me in finding out the accurate answer from the following question. Labor contracts having agency shop arrangements need: (1) Employees of a firm to give dues to the union. (2) The firm to hire just union members. (3) New employees of the firm t

  • Q : Positive economic loss Can someone help

    Can someone help me in finding out the right answer from the given options. Sara left her high strain job at hospital as the neurosurgeon making $250,000 yearly to launch ‘Flowers-to-Go’, a new firm. Sara still feels similar quantity of stress; therefore s

  • Q : Preferential treatment of discrimination

    Programs that provide preferential treatment to members of groups which have previously suffered due to discrimination are termed as: (i) redistributive justice. (ii) affirmative action. (iii) compensating variations. (iv) equity considerations. (v) transfer programs.

  • Q : Rates of Return of Cash Flow Assume

    Assume that an apartment complex is predicted to produce a consistent net $800,000 cash flow yearly in rent, after deducting all recurring variable costs (for example, taxes, utilities, and maintenance). When its current price is $10