If the demand for a product increases proportionately faster than the increase in consumers' incomes, then the income elasticity of demand for the product is
A)zero.
B)greater than zero.
C)less than zero.
D)equal to 1.

Question

Quizplus · Accepted Answer

The income elasticity of demand measures how the quantity demanded of a good responds to a change in income. If demand increases more than proportionately as income increases, the income elasticity of demand is greater than zero, indicating the product is a normal good with strong income elasticity.

If the Demand for a Product Increases Proportionately Faster Than