The income elasticity of demand of a normal good is always:
A)positive.
B)negative.
C)zero.
D)determined by the interaction of supply and demand.

Question

Quizplus · Accepted Answer

Income elasticity of demand measures the responsiveness of quantity demanded to a change in income. For normal goods, as income increases, the demand for the good also increases, resulting in a positive income elasticity of demand.

The Income Elasticity of Demand of a Normal Good Is