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15-02-2024
Business

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Your income rises by 10%, and the quantity of raisins that you purchase falls by 5%. Which of the following is correct?
a) The income elasticity of demand for raisins is -0.5, and raisins are an inferior good.
b) The income elasticity of demand for raisins is 0.5, and raisins are a normal good.
c) The income elasticity of demand for raisins is -2, and raisins are an inferior good.
d) The income elasticity of demand for raisins is 2, and raisins are a normal good.

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