Consider the following statements about income elasticity:
(1) For inferior goods, income elasticity is negative.
(2) For necessity goods, income elasticity is between zero and one.
(3) When income elasticity for a good is greater than one, the share of income spent on the good
is higher with higher income.
31. Which of the above statements about income elasticity are true?
a) (1) and (2) only
b) (2) and (3) only
c) (3) only
d) (1), (2), and (3)