Question

When the income of "X" was Rs. 1 point
5000 then he spent his income
on goods Rs. 2000 and when
the income increased upto Rs.
8000 then he used to spend his
income on goods Rs. 5000.
Hence, show the relationship
between income and income
spent on goods through the
elasticity.
(a) e > 1
0 (b) e = 1
0 (c) = 0
(d) e < 1​

Answer 1

Answer:

e>1.....................

Answer 2

a) elasticity is greater than 1