If a consumer demands the same (positive)amount of a good no matter what their income,then the income elasticity is also positive.

Question

Quizplus · Accepted Answer

Income elasticity measures how the quantity demanded of a good responds to a change in income. If the quantity demanded remains constant regardless of income changes, the income elasticity is zero, indicating the good is perfectly inelastic to income changes.

If a Consumer Demands the Same (Positive)amount of a Good