A good with an income elasticity between 0 and 1 is:
A) a complement.
B) an inferior good.
C) a necessity.
D) a luxury.

Name: A good with an income elasticity between 0 and 1 is: A) a complement. B) an inferior good. C) a necessity. D) a luxury.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

Goods with an income elasticity between 0 and 1 are considered necessities because as income increases, the demand for these goods increases as well, but at a slower rate than the increase in income.

A Good with an Income Elasticity Between 0 and 1