The income elasticity of a normal goods is

Assessment: WAEC SSCE - Economics - 2000 (Objective) Subject: Economics

Question 1 Report

The income elasticity of a normal goods is
Answer Details
The income elasticity of a normal good is positive. This means that as a person's income increases, the demand for the good also increases. In other words, the quantity demanded of a normal good is directly related to income. If income increases, people can afford to buy more of the good, and if income decreases, people will buy less of the good.

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