Anushka posted an Question
March 18, 2021 • 23:01 pm 30 points
  • UGC NET
  • Economics

Income would have major effect on demand of primary goods on if elasticity is high.how option 2 is correct ?

income would have major effect on demand of primary goods on if elasticity is high.how option 2 is correct ?

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  • Ravindra nath mahto best-answer

    Read the solution.

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    It is very simple that if the income of developed country rises then demand for primary goods declines. It shows that income elasticity of demand is low in the developed country. It is so because rise in income in the developed country raise the demand for manufactured goods.

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