If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is

by
Question:

If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is

A.

Luxury

B.

Necessity

C.

Giffen’s goods

D.

Independent good

Answer» b. Necessity

Note: The above multiple-choice question is for all general and Competitive Exams in India.