If the income elasticity of demand for ramen noodles is 0.25, ramen noodles are a(n) _____ good.
A) luxury
B) normal
C) superior
D) inferior

Name: If the income elasticity of demand for ramen noodles is 0.25, ramen noodles are a(n) _____ good. A) luxury B) normal C) superior D) inferior
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Question

Quizplus · Accepted Answer

Normal goods have an income elasticity of demand greater than 0 but less than 1, indicating that demand increases with income, but at a slower rate than income increases.

If the Income Elasticity of Demand for Ramen Noodles Is