For a normal good,quantity demanded
A)increases as income rises,so the income elasticity of demand is positive
B)increases as income rises,so the income elasticity of demand is negative
C)falls as income rises,so the income elasticity of demand is positive
D)falls as income rises,so the income elasticity of demand is negative
E)remains unchanged as income rises,so the income elasticity of demand is zero

Question

Quizplus · Accepted Answer

A normal good is a good whose demand increases as income increases. Therefore, the income elasticity of demand for normal goods is positive, indicating that when income rises, the quantity demanded of the good increases.

For a Normal Good,quantity Demanded