What does the income elasticity of demand tell us about the types of goods that consumers...

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What does the income elasticity of demand tell us about the types of goods that consumers...

What does the income elasticity of demand tell us about the types of goods that consumers will buy?

business economics

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Answer 1

Answer #1

Income elasticity of demand tell us that the good is of type normal or inferior.

In other words, if income elasticity of the good that consumer is buying or will buy is negative, it means that the good is a inferior good ( for the consumer).

And if the income elasticity of the good that consumer is buying or will buy is positive, it means that the good is a normal good ( for the consumer).

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Answer 2

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What does the income elasticity of demand tell us about the types of goods that consumers...

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What so the following elasticites tell you about the goods. A. Elasticity of demand for good...

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Please help * What is cross-price elasticity of demand? Why is this measurement helpful? What does...

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What does the income elasticity of demand tell us about the types of goods that consumers...

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Add Answer to: What does the income elasticity of demand tell us about the types of goods that consumers...

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