Question

alex gets his car waxed once a week regardless of his income. the income elasticity is _____ and the good is ____

Answer 1

The income ealsticity of a good is the degree of responsiveness of the demand for a good due to change in income of the consumer. It is stated as the percentage change in demand for a good divided by the percentage change in income of a consumer. Demand for a goods regardless of a change in income is known as the necessity goods. The demand for such a good is less sensitive to change in income.

For which income ealsticity is between 0 to 1.

So that the for the car waxed once in a week regardless of a change in income the income ealsticity is between 0 to 1 and the good is necessity good.