What sign might you expect the income elasticity


Problem

One type of elasticity that economists often use is the income elasticity, which is measured as the percentage change in the quantity of a good when the income of consumers changes by 1%.

a. What sign might you expect the income elasticity to have if the good in question is Swedish massages?

b. What sign might you expect the income elasticity to have if the good in question is Ramen noodles?

c. What sign might you expect the income elasticity to have if the good in question is table salt?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What sign might you expect the income elasticity
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