Normal goods
A) have positive income elasticity of demand.
B) have negative income elasticity of demand.
C) have negative elasticity of supply.
D) are sometimes also inferior goods.
E) do not have elasticity of demand.

Question

Quizplus · Accepted Answer

Normal goods have a positive income elasticity of demand, meaning that as income increases, demand for the good also increases. This is in contrast to inferior goods, which have a negative income elasticity of demand. Normal goods may have elasticity of demand, but it is not necessarily the determining factor in whether a good is normal or inferior.

Normal Goods