CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

For a normal good, ______
A. the price elasticity of demand is negative; the income elasticity of demand is negative.
B. the price elasticity of demand is positive; the income elasticity of demand is negative.
C. the price elasticity of demand is negative; the income elasticity of demand is positive.
Explanation: For a normal good, demand increases as income increases and the quantity demanded falls as price increases.

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