If the quantity demanded of a product increases from 40000 to 48000 per year when per-capita income increases from Rs. 30000 to Rs. 33000 per year, the income elasticity of demand is
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4 marks, −1MicroeconomicsDemand theory and elasticityIncome elasticity, normal and inferior goods and Engel curvesModerateabout 1 min
CUET-PG 2018 Question 42: Demand theory and elasticity
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Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Income elasticity, normal and inferior goods and Engel curves, part of Demand theory and elasticity in Microeconomics.
How demand responds to income, how goods are classified by that response, and Engel's law.
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