If a good is neither normal nor inferior, then:
A)EV is larger than CV.
B)there is no CS.
C)EV is smaller than CS.
D)EV, CV, and CS are the same.

Question

Quizplus · Accepted Answer

If a good is neither normal nor inferior, its income elasticity of demand is zero, which means the change in income has no effect on the quantity demanded of the good. Therefore, the income effect is zero, and EV, CV, and CS are all the same.

If a Good Is Neither Normal nor Inferior, Then