Question

State elasticity of demand of followings : (a) Luxurious goods (b) Goods of alternate use (c) Necessity goods.

Answer 1

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A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand. If income elasticity of demand of a commodity is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.

Answer 2

Answer:

c

Explanation:

c because elastiscity mean same price change in qantity