The income elasticity of demand is most likely to be positive for computers.

Here's why:

Income elasticity of demand measures how the quantity demanded of a good responds to a change in consumers' income. A positive income elasticity of demand is associated with normal goods (also known as superior goods), meaning that as a consumer's income increases, the demand for these goods also increases.

1. Rethreaded tires and used clothing are considered inferior goods. These are goods for which demand decreases when consumer income rises. So, they are less likely to have a positive income elasticity of demand.

2. Cabbage can be considered a necessity good, which typically has an income elasticity of demand between 0 and 1. This means that demand increases with income, but not as much as income does.

3. Computers, on the other hand, are considered normal goods. They are not essential for survival but are associated with a higher standard of living. As income increases, consumers are more likely to purchase these goods, leading to a positive income elasticity of demand.

So, out of the options given, computers are most likely to have a positive income elasticity of demand.

Question

The income elasticity of demand is most likely to be positive for computers.

Here's why:

Income elasticity of demand measures how the quantity demanded of a good responds to a change in consumers' income. A positive income elasticity of demand is associated with normal goods (also known as superior goods), meaning that as a consumer's income increases, the demand for these goods also increases.

1. Rethreaded tires and used clothing are considered inferior goods. These are goods for which demand decreases when consumer income rises. So, they are less likely to have a positive income elasticity of demand.

2. Cabbage can be considered a necessity good, which typically has an income elasticity of demand between 0 and 1. This means that demand increases with income, but not as much as income does.

3. Computers, on the other hand, are considered normal goods. They are not essential for survival but are associated with a higher standard of living. As income increases, consumers are more likely to purchase these goods, leading to a positive income elasticity of demand.

So, out of the options given, computers are most likely to have a positive income elasticity of demand.

Knowee AI · Accepted Answer

The income elasticity of demand is most likely to be positive for computers.

Here's why:

Income elasticity of demand measures how the quantity demanded of a good responds to a change in consumers' income. A positive income elasticity of demand is associated with normal goods (also known as superior goods), meaning that as a consumer's income increases, the demand for these goods also increases.

1. Rethreaded tires and used clothing are considered inferior goods. These are goods for which demand decreases when consumer income rises. So, they are less likely to have a positive income elasticity of demand.

2. Cabbage can be considered a necessity good, which typically has an income elasticity of demand between 0 and 1. This means that demand increases with income, but not as much as income does.

3. Computers, on the other hand, are considered normal goods. They are not essential for survival but are associated with a higher standard of living. As income increases, consumers are more likely to purchase these goods, leading to a positive income elasticity of demand.

So, out of the options given, computers are most likely to have a positive income elasticity of demand.

For which product is the income elasticity of demand most likely to be positive?Multiple Choicerethreaded tirescabbageused clothingcomputers

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