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Positive income elasticity implies that as income rises demand for the...

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Positive income elasticity implies that as income rises, demand for the commodity

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Correct Answer: Option A
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.
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Sumitra Jnyan
Sumitra Jnyan 8 years ago
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.
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