1.2.5 - income elasticity of demand

Question 1

income elasticity of demand

Answer 1

how change in income impacts demand

Question 2

income elasticity of deamnd formula

Answer 2

(%change in income) / (%change in price)

Question 3

types of yed goods

Answer 3

• luxury
  -normal
  -inferior

Question 4

luxury good - bmw

Answer 4

very positive

Question 5

normal good - fiat

Answer 5

slightly positive

Question 6

inferior good - kia

Answer 6

negative number