Consumer's income per year increases from EUR 20,000 to EUR 25,000. Her demand for a product per year increases from 30 to 60 units. Which of the following is correct?

Question

Consumer's income per year increases from EUR 20,000 to EUR 25,000. Her demand for a product per year increases from 30 to 60 units. Which of the following is correct?

Accepted Answer

The product is likely to be a luxury good.

Answer

The income elasticity of demand for the product is equal to one.

Answer

The product is an inferior good.

Answer

More of these statements are correct.

Answer

The product is likely to be a necessity.

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Consumer's income per year increases from EUR 20,000 to EUR 25,000. Her demand f...

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