For a good to be considered normal, the _____ elasticity of demand must be _____.
A) income; between 1 and 0
B) cross-price; less than 0
C) cross-price; equal to 0
D) income; greater than 0

Name: For a good to be considered normal, the _____ elasticity of demand must be _____. A) income; between 1 and 0 B) cross-price; less than 0 C) cross-price; equal to 0 D) income; greater than 0
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Question

Quizplus · Accepted Answer

A normal good has a positive income elasticity of demand, meaning demand increases as income increases.

For a Good to Be Considered Normal, the _____ Elasticity