If an increase in income of 10% causes an increase in quantity demanded of 20% for a good, the good is a(n) _____ good.
A) normal
B) luxury
C) inferior
D) abnormal

Name: If an increase in income of 10% causes an increase in quantity demanded of 20% for a good, the good is a(n) _____ good. A) normal B) luxury C) inferior D) abnormal
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Question

Quizplus · Accepted Answer

A luxury good is characterized by a greater than proportional increase in quantity demanded as income increases, indicating an income elasticity greater than 1.

If an Increase in Income of 10% Causes an Increase