The income elasticity of demand for all goods taken together must be
A) zero.
B) -1.
C) +1.
D) between 0 and 1.

Name: The income elasticity of demand for all goods taken together must be A) zero. B) -1. C) +1. D) between 0 and 1.
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Question

Quizplus · Accepted Answer

The income elasticity of demand for all goods taken together must be +1 because as income increases, the proportionate increase in the demand for all goods (considered together) is equal to the proportionate increase in income.

The Income Elasticity of Demand for All Goods Taken Together