A positive income elasticity of demand for a good means:
A)it is a substitute.
B)it is a complement.
C)it is a normal good.
D)it is an inferior good.

Name: A positive income elasticity of demand for a good means: A)it is a substitute. B)it is a complement. C)it is a normal good. D)it is an inferior good.
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Question

A positive income elasticity of demand for a good means:
A)​it is a substitute.
B)​it is a complement.
C)​it is a normal good.
D)​it is an inferior good.

Quizplus · Accepted Answer

A positive income elasticity of demand means that as income increases, so does the quantity demanded, indicating that the good is a normal good.

A Positive Income Elasticity of Demand for a Good Means