A good for which an inverse relationship exists between the demand for the good and income is a(n) good. Do you know the answer
1 answer:
Answer:
Inferior.
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of demand is given by the formula;
A good for which an inverse relationship exists between the demand for the good and income is an inferior good.
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If there was a 100 units decrease at every price level, the new equilibrium price would be<u> $2.00.</u>
<h3>Equilibrium Price </h3>- Price where quantity demanded is equal to quantity supplied.
Reducing by 100 units, all the quantity demanded units will lead to the following new units:
- $10 - 100
- $8 - 140
- $6 - 270
- $4 - 290
- $2 - 310
We can see that at $2, both the demand and supply are at 310 units which makes this the new equilibrium.
Find out more on the equilibrium price at brainly.com/question/14203212.
