Assume that a 3% increase in income across the economy produces a 1% decrease in the quantity of fast food demanded. The income elasticity of demand for fast food is ____________, and therefore fast food is _______________Multiple Choicenegative; an inferior good.negative; a normal good.positive; an inferior good.positive; a normal good.

Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is:Multiple Choicenegative and therefore X is an inferior good.negative and therefore X is a normal good.positive and therefore X is an inferior good.positive and therefore X is a normal good.

Suppose that a 20% increase in income generates a 15% increase in the quantity of X demanded. The income elasticity of demand for good X isMultiple Choicenegative and therefore X is an inferior good.positive and therefore X is a normal good.negative and therefore X is an complementary good.positive and therefore X is a substitute good.

A negative income elasticity of demand indicates that the productMultiple Choiceis an inferior good.is a normal good.is a complementary good.is a substitute good.

If the income elasticity coefficient is negative, it means thatmultiple choice 2the good is normal so that if price falls, the quantity demanded of the good will rise.the good is inferior so that if price falls, the quantity demanded of the good will rise.the good is inferior so that if income falls, the quantity demanded of the good will rise.the good is inferior so that if income falls, the quantity demanded of the good will fall.

Assume that consumers in Newtown experience an increase in income of 5 percent. If the quantity demanded of the triple waffles at Picasso’s Gelato ice-creamery decreases by 10 percent, this is consistent with:Group of answer choicesTriple waffles being a normal good and having an income elasticity of demand equal to 2.Triple waffles being a normal good and having an income elasticity of demand equal to 0.5.Triple waffles being an inferior good and having an income elasticity of demand equal to 2.Triple waffles being an inferior good and having an income elasticity of demand equal to 0.5.None of the statements in this list apply.