1142. Calculate income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5%.

-0.5
0.5
-2
2
✅ The correct answer is B.
Income elasticity for the household when the income of a household rises by 10% and the demand for Rice rises by 5% is 0.5. Income Elasticity = (% change in quantity demanded) / (% change in income).

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