If income elasticity of demand is positive, what can be said about this product? Normal good Inferior good Necessary good Luxury good
Added by Jeremy A.
Close
Step 1
Income elasticity of demand measures the responsiveness of demand for a product to a change in consumers' income. It is calculated as the percentage change in demand for a product divided by the percentage change in income. Show more…
Show all steps
Your feedback will help us improve your experience
Sanchit Jain and 101 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
For which of the following types of goods would the income elasticity of demand be positive and relatively large? A. luxuries B. all normal goods C. all inferior goods D. goods for which there are many good complements
Sanchit J.
Q.1.12 If the income elasticity of demand for a good is +0.5, then this implies that this good must be a(n) (a) necessity. (b) luxury. (c) inferior good. (d) complement.
Haricharan G.
The income elasticity of demand with a value more than one indicates that the demand is ________.income inelastic for a normal good for an inferior good income inelastic for an inferior good income elastic for a normal good
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD