Which of these indicates a possible income elasticity measure for a normal good?
A) -2.8
B) 0.8
C) 0
D) -0.3

Name: Which of these indicates a possible income elasticity measure for a normal good? A) -2.8 B) 0.8 C) 0 D) -0.3
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Quizplus · Accepted Answer

Income elasticity of demand for a normal good is positive, indicating that as income increases, demand for the good also increases. A value of 0.8 suggests that the good is a normal good, as demand increases with an increase in income, but at a less than proportional rate.

Which of These Indicates a Possible Income Elasticity Measure for a Normal