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

Question

Quizplus · Accepted Answer

A good is normal if the sign on the income elasticity formula is positive, meaning that as income increases, the quantity demanded for the good also increases. The options B and C refer to the magnitude of the income elasticity, not the sign, and are not directly related to whether a good is normal or inferior.

A Good Is Normal If the Sign on the Income