Question

Generally income elasticity for a commodity is?​

Answer 1

Answer:

Income elasticity of normal goods may be less than unity (inelastic) or greater than unity (elastic) depending upon whether (say) a 10% increase in income leads to less than or more than a 10% increase in the quantity demanded. ... The income elasticity measure helps to identify commodities to some extent.

Answer 2

Answer:

Income elasticity of normal goods may be less than unity (inelastic) or greater than unity (elastic) depending upon whether (say) a 10% increase in income leads to less than or more than a 10% increase in the quantity demanded. ... The income elasticity measure helps to identify commodities to some extent.