A good is normal if the sign on the income elasticity formula is
A)Positive.
B)Greater than 1.
C)Less than 1.
D)Negative.

Name: A good is normal if the sign on the income elasticity formula is A)Positive. B)Greater than 1. C)Less than 1. D)Negative.
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Question

Quizplus · Accepted Answer

A normal good is one for which as income increases, the demand for the good also increases. This is reflected in a positive income elasticity of demand.

A Good Is Normal If the Sign on the Income