Economics Elasticity Of Demand Questions Medium
A zero income elasticity of demand indicates that a change in income does not affect the quantity demanded of a particular good or service. In other words, the demand for the good or service remains constant regardless of changes in income. This suggests that the good or service is a necessity or essential item, as consumers continue to purchase it regardless of their income level. Examples of goods with zero income elasticity of demand include basic food items, medications, and utilities.