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Income elasticity of demand measures:

Income elasticity of demand measures:
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Production response to taxation
  • B Responsiveness of demand to income change
  • C Relationship between price and supply
  • D Cost of production changes
Correct Answer: Option B
Explanation:
Income elasticity shows how consumer demand changes when income changes. Normal goods usually have positive income elasticity because demand increases as income rises.

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