The table below shows estimated values of income elasticities of demand for four different consumer goods, P, Q, R and S.
| Good | Estimate of income elasticity of demand |
|---|---|
| P | +0.45 |
| Q | +1.25 |
| R | -0.35 |
| S | -0.80 |
From the table, it may be concluded that
the price elasticity of demand for all four goods is inelastic.
the cross-price elasticity of demand between Good P and Good Q is negative.
as incomes rise, the demand for Good R and Good S will rise.
as incomes rise, only the demand for Good P and Good Q will rise.
