Q:
The Income elasticity demand for farm products is
Answer & Explanation
Answer: C) Very low in India
Explanation: Income easticity of demand measures the responsiveness of demand for any goods to changes in income. With increase in incomes generally the demand for farm products like rice wheat etc, will not change drastically. With income increase, demand for luxuries such as consumer durables etc will increase. The income elasticity of demand for farm products is thus low.
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