If a Product's Income Elasticity of Demand Is - 1

question 75

Multiple Choice

If a product's income elasticity of demand is - 1.7, then we can conclude that

• A) the product is certainly a necessity.
• B) a decrease in income will lead to an increase in demand for the product.
• C) an increase in income will lead to an increase in demand for the product.
• D) the product is a normal good.
• E) the product is a luxury good.