A product with income elasticity less than one but greater than zero is:

CA Foundation · Business Economics · MTP · September 2026
A product with income elasticity less than one but greater than zero is:
(A) A. Inferior good
(B) B. Necessity
(C) C. Luxury
(D) D. Unrelated

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Necessity

Topics: Theory of Demand and Supply

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic