If income increases by 10 percent and the quantity demanded of a good then increases by 5 percent, the good is normal and income-inelastic.
What is income-inelastic.?
The quantity of a good that is demanded in response to a change in consumer income is referred to as the income elasticity of demand in economics. The ratio of the percentage change in quantity required to the percentage change in income is used to calculate it.
Therefore,
If income increases by 10 percent and the quantity demanded of a good then increases by 5 percent, the good is normal and income-inelastic.
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