For a household suppose the income elasticity of a commodity is arrived at 0.5; what can be assumed about the nature of the good?
CA Foundation · Business Economics · PYQS · May 2026
For a household suppose the income elasticity of a commodity is arrived at 0.5; what can be assumed about the nature of the good?
Suggested Answer and Working Notes:
Correct Answer: Option (D)
D. It is a normal good and fulfils a necessity
Topics: Theory of Demand and Supply
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