A normal good has a(n)
A) income elasticity greater than 0 but less than 1.
B) income elasticity greater than 1.
C) negative income elasticity.
D) income elasticity equal to zero.

Question

Quizplus · Accepted Answer

A normal good has a positive income elasticity of demand, meaning that as income increases, the demand for the good also increases. This elasticity is greater than 0 but can be less than 1, indicating that the good is a necessity rather than a luxury.

A Normal Good Has A(n)