Q353
Positive income elasticity implies that as income rises, demand for the commodity
A.
Rises
AnswerB.
Falls
C.
Remains unchanged
D.
Becomes Zero
Answer: Option A
Solution
Answer: Option A
Solution:
Positive income elasticity implies that as income rises, demand for the commodity rises. A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.