Question

3. If a product's income elasticity is -1.7, then we can conclude that a. an increase in income will lead to an increase in demand for the product. b. the product is certainly a necessity. c. the product is a normal good. d. a 1% decrease in the product's price will result in a 1.7% increase in demand for the product. e. a decrease in income will lead to an increase in demand for the product.