If the income elasticity of a good is positive, we can conclude that the good is
A) an inferior good.
B) a normal good.
C) a luxury good.
D) a necessity.

Name: If the income elasticity of a good is positive, we can conclude that the good is A) an inferior good. B) a normal good. C) a luxury good. D) a necessity.
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Question

Quizplus · Accepted Answer

A positive income elasticity indicates that as income increases, the demand for the good also increases, which is characteristic of a normal good.

If the Income Elasticity of a Good Is Positive, We