Question

a) How can commodities be classified on the basis of income
elasticity of demand?​

Answer 1

Answer:

Categorizing goods: Implies that income elasticity of demand helps in classifying goods, such as normal goods, essential goods, or inferior goods. The classification of goods enables sellers to select the goods to be produced and the quantity of goods to be produced.

Answer 2

Answer:

Categorizing goods: Implies that income elasticity of demand helps in classifying goods, such as normal goods, essential goods, or inferior goods. The classification of goods enables sellers to select the goods to be produced and the quantity of goods to be produced.