Positive income elasticity implies that as income rises, demand for the commodity
A. Rises
B. Falls
C. Remains unchanged
D. Becomes Zero
Answer: Option A
Solution(By Examveda Team)
Positive income elasticity implies that as income rises, demand for the commodity rises. A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.Join The Discussion
Comments ( 1 )
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
income elasticity basically says that, when income of the consumer increases demand for good increases......thus if it is positive then a small increment in income creates a rise in demand.