If the income elasticity of demand for a good is .59, then it is what type of good?
A) Price elastic.
B) Price inelastic.
C) Income inelastic.
D) Income elastic.
E) Inferior.

Name: If the income elasticity of demand for a good is .59, then it is what type of good? A) Price elastic. B) Price inelastic. C) Income inelastic. D) Income elastic. E) Inferior.
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Question

Quizplus · Accepted Answer

Income elasticity of demand of 0.59 indicates that the good is income inelastic, meaning demand changes less than proportionately with income changes.

If the Income Elasticity of Demand for a Good Is