Suppose the consumer's income elasticity for good $x$ is -0.10 when monthly income is $1,000, and the consumer's income elasticity for good $x$ is 0.10 when monthly income is $2,000. From this information we can infer that good $x$ in an inferior good for low levels of income and a normal good for high levels of income.

Question

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A negative income elasticity means that the good is inferior, while a positive income elasticity means that the good is normal. The fact that the income elasticity changes from negative to positive as income increases indicates that good $x$ is inferior for low levels of income and becomes a normal good for high levels of income. A negative income elasticity indicates that the good is an inferior good, meaning that as income increases, the demand for the good decreases. A positive income elasticity indicates that the good is a normal good, meaning that as income increases, the demand for the good increases. In this case, the income elasticity is negative (i.e. -0.10) when income is $1,000, indicating that the good is inferior at this income level. However, the income elasticity becomes positive (i.e. 0.10) when income increases to $2,000, indicating that the good becomes a normal good at higher income levels. Therefore, we can infer that good $x$ is an inferior good for low levels of income and a normal good for high levels of income.

Suppose the Consumer's Income Elasticity for Good xxx Is -010 When Monthly Income Is $1,000, and the Consumer's Income

Suppose the Consumer's Income Elasticity for Good $x$ Is -010 When Monthly Income Is $1,000, and the Consumer's Income