For Susie,a 7 percent increase in income results in a 12 percent increase in the quantity demanded of pizza.For Susie,the income elasticity of demand for pizza is
A) negative,and pizza is an normal good.
B) negative,and pizza is a inferior good.
C) positive,and pizza is an inferior good.
D) positive,and pizza is a normal good.

Question

Quizplus · Accepted Answer

The income elasticity of demand (YED) is positive, indicating that pizza is a normal good. Additionally, the fact that a 7 percent increase in income leads to a 12 percent increase in quantity demanded further supports the idea that pizza is a normal good.

For Susie,a 7 Percent Increase in Income Results in a 12