The income elasticity of demand is ________ if the good is ________ good.
A) positive; a substitute
B) positive; an inferior
C) less than one; an inferior
D) negative; a normal
E) positive; a normal

Question

Quizplus · Accepted Answer

The income elasticity of demand is positive if the good is a normal good. This means that as consumers' income increases, their demand for the good also increases.

The Income Elasticity of Demand Is ________ If the Good