Suppose the income of canned pinto bean consumers rises. All else equal, we can conclude that:
A) the income elasticity of demand is positive if beans are a normal good.
B) the income elasticity of demand is positive if beans are an inferior good.
C) the cross-price elasticity between beans and other goods is positive.
D) the cross-price elasticity between beans and other goods is negative.

Question

Quizplus · Accepted Answer

If canned pinto beans are a normal good, an increase in consumer income will lead to an increase in the quantity demanded, resulting in a positive income elasticity of demand.

Suppose the Income of Canned Pinto Bean Consumers Rises