8. You find that the income elasticity for a particular good is +2.5. Is this a normal or inferior good? Is it a luxury good or a necessity? 9. You find that the income elasticity for a particular good is -0.5. Is this a normal or inferior good? Is it a luxury good or a necessity?
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Income elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in consumer income. Show more…
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