Question

g If the demand for a product increases proportionately faster than the increase in consumers' incomes, then the income elasticity of demand for the product is Multiple Choice zero. greater than zero. less than zero. equal to 1.

Answer 1

Answer:

greater than zero.

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income

Income elasticity of demand = percentage change in quantity demanded / percentage change in income.

I hope my answer helps you