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

-Refer to the information above to answer this question.What is the income elasticity of product K?
A)0.15.
B)15.
C)approximately 14.
D)approximately 1.4.
E)approximately 0.7.

Question

Below is some information on the demand for products K,L and M.
 
-Refer to the information above to answer this question.What is the income elasticity of product K?
A)0.15. 
B)15. 
C)approximately 14. 
D)approximately 1.4. 
E)approximately 0.7.

Quizplus · Accepted Answer

Income elasticity of demand measures how the quantity demanded of a good responds to a change in consumers' income, calculated as the percentage change in quantity demanded divided by the percentage change in income. An elasticity of approximately 1.4 suggests that product K is a normal good, with demand increasing more than proportionally as income increases.

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