If the income elasticity of demand for corn is 0.5, then as income increases,
A) the demand for corn will increase.
B) the demand for corn will decrease.
C) the supply curve of corn will shift leftward.
D) corn will prove to be an inferior good.

Question

Quizplus · Accepted Answer

Since the income elasticity of demand for corn is positive (0.5), it means that corn is a normal good and its demand will increase as income increases.

If the Income Elasticity of Demand for Corn Is 0