given are the following income elasticities of demand: product income elasticity movies 3.4 dental services 1.0 clothing 0.5 The values indicate that multiple choice 1 movies and dental services are normal goods, but clothing is an inferior good.a 10 percent increase in income will increase the demand for clothing by 20 percent.a 5 percent increase in the price of dental services will decrease the demand for dental services by 5 percent.a 1 percent increase in income will increase the quantity of movies demanded by 3.4 percent A negative income-elasticity coefficient means thatmultiple choice 2the good is normal such that if the price falls, the quantity demanded of the good will rise.the good is inferior such that if income falls, the quantity demanded of the good will rise.the good is inferior such that if income falls, the quantity demanded of the good will fall.the good is inferior such that if the price falls, the quantity demanded of the good will rise.
