Normal goods have income elasticities greater than 1,while inferior goods have income elasticities less than 1.

Name: Normal goods have income elasticities greater than 1,while inferior goods have income elasticities less than 1.
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Normal goods have income elasticities between 0 and 1, while luxury goods have income elasticities greater than 1. Inferior goods have income elasticities less than 0, meaning that as income rises, demand for the inferior good decreases.

Normal Goods Have Income Elasticities Greater Than 1,while Inferior Goods