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Commerce · Q368

Economics

Graduate and Post Graduate · Commerce · question 368

Q368

Calculate the income elasticity for a household when the income of this household rises by 5% and the demand for buttons does not change at all.

A.
Infinity
B.
1
C.
Zero
Answer
D.
5

Answer: Option C

Solution

Answer: Option C
Solution:
The income elasticity for a household is Zero when the income of this household rises by 5% and the demand for buttons does not change at all.