Question 18
The consumption basket of a person for Month-1 and Month-2 is provided in the table below. Given this information, if the income for the person has changed from Rs. 8000 in Month-1 to Rs. 10000 in Month-2, then which of the following statements are true with respect to income elasticity (choose all those that are applicable)?
| Item | % Of Income Spent for Item in Month-1 | % Of Income Spent for Item in Month-2 |
|---|---|---|
| A | 12 | 20 |
| B | 8 | 10 |
| C | 10 | 8 |
| D | 9 | 16 |
| E | 5 | 2 |
| F | 13 | 10 |
| G | 32 | 19 |
| H | 11 | 14 |
Item A is a “normal good”
Item A is a “necessity good”
Item A is a “luxury good”
Item A is an “inferior good”
Item G is a “normal good”
Item G is a “necessity good”
Item G is a “luxury good”
Item G is an “inferior good”