Refer to the table above.Which product is a normal good but least responsive to a change in income?
A) Product W
B) Product X
C) Product Y
D) Product Z

Question

Refer to the table above.Which product is a normal good but least responsive to a change in income?
A) Product W 
B) Product X 
C) Product Y 
D) Product Z

Quizplus · Accepted Answer

Product X has a positive income elasticity of demand between 0 and 1, indicating that it is a normal good but least responsive to a change in income. While products W and Z are also normal goods, their income elasticities of demand exceed 1, indicating that they are more responsive to changes in income. Product Y is an inferior good, as its income elasticity of demand is negative.

Refer to the Table Above