_____ have an income elasticity of demand of between 0 and +1.
Normal goods
The correct answer is option 2. Normal goods have an income elasticity of demand between 0 and +1, meaning that as income increases, the demand for these goods also increases, but at a lower rate than the increase in income.
Important Questions from Consumer behaviour
In relation to theory of consumers behaviour, which of the following statements is INCORRECT?
The concept of consumer surplus was propounded by __________.
Goods whose demand varies inversely with income are called ____ goods.
According to ____ theory, a consumer will continue to buy such products that will deliver him the most utility or maximum satisfaction at relative prices.
Which of the following is true for a normal good when there is a decrease in consumer income?
