Below is some information on the demand for products K,L and M.

-Refer to information above to answer this question.What is the income elasticity of product L?
A)approximately 12.
B)approximately 1.2.
C)greater than the income elasticity of product K.
D)approximately 0.8.
E)8.

Question

Below is some information on the demand for products K,L and M.
 
-Refer to information above to answer this question.What is the income elasticity of product L?
A)approximately 12. 
B)approximately 1.2. 
C)greater than the income elasticity of product K. 
D)approximately 0.8. 
E)8.

Quizplus · Accepted Answer

Income elasticity of demand measures how the quantity demanded of a good responds to a change in consumers' income. An income elasticity of 1.2 suggests that product L is a normal good, as the demand for it increases by a greater proportion than the increase in income.

Below Is Some Information on the Demand for Products K,L