A) Zero
B) Negative
C) Infinite
D) Positive
Correct Answer: B
Solution :
A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes. A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.You need to login to perform this action.
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