A person purchased 8 units of sugar when his income was Rs. 2000. As his income has risen to Rs 2500, he has purchased 12 units of sugar. Then, the income elasticity of demand will be
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1 mark, −0.33MicroeconomicsDemand theory and elasticityIncome elasticity, normal and inferior goods and Engel curvesEasyabout 1 min
UoH 2021 Question 48: 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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