Neco Model Questions Vol1 2021 Economics Question 24
Practice objective / multiple choice question 24 from the 2021 Neco Model Questions Vol1 Economics examination.
A consumer's income rises from \(\text{₦}50{,}000\) to \(\text{₦}60{,}000\), and his expenditure on good X rises from \(\text{₦}20{,}000\) to \(\text{₦}24{,}000\). Assuming the price of X remains constant, calculate the income elasticity of demand for good X using the midpoint method, and state whether the good is a normal or luxury good.
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About This Question
This is Neco Model Questions Vol1 2021 Economics Question 24. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Economics examination.
Difficulty level: Easy .
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