Which firm is likely to see its sales increase the most

Reference no: EM131020587

Consider firms selling three goods-one firm sells a good with an income elasticity of demand less than zero, one firm sells a good with an income elasticity of demand greater than zero but less than one, and one firm sells a good with an income elasticity of demand greater than one. In a recession, which firm is likely to see its sales decline the most? Which firm is likely to see its sales increase the most? Briefly explain.

Reference no: EM131020587

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