If the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction,then this good will have an income elasticity _____1,and it is a(n)_____ good.
A)greater than;normal
B)less than;normal
C)equal to;normal
D)greater than;inferior

Question

Quizplus · Accepted Answer

If the percentage change in quantity demanded is greater than the percentage change in income and in the same direction, then the income elasticity will be greater than 1, indicating that the good is a normal good.

If the Percentage Change in the Quantity Demanded of a Good