If the income elasticity of demand for a good is zero,then
A) the goods inferior.
B) the good is normal.
C) the good violates the Law of Demand.
D) consumption of the good does not change as income changes.

Question

Quizplus · Accepted Answer

If the income elasticity of demand for a good is zero, it means that there is no change in the quantity demanded of the good as income changes. This suggests that the good is a necessity or an essential item that consumers need to purchase regardless of their income level. Therefore, the consumption of the good does not change as income changes.

If the Income Elasticity of Demand for a Good Is