income elasticity

What does income elasticity of demand measure?

• The change in supply when income changes

• The change in consumer preferences

• The change in price of a good

• The change in demand when income changes

What happens to the demand for inferior goods when income increases?

• It increases

• It decreases

• It stays the same

• It fluctuates

Which type of good sees an increase in demand when consumer income rises?

• Inferior goods

• Normal goods

• Substandard goods

• Luxury goods

What is the YED value for necessary goods?

• Between 0 and 1

• Less than 0

• Exactly 0

• Greater than 1

What is the YED value for luxury goods?

• Less than 0

• Exactly 0

• Between 0 and 1

• Greater than 1