To determine whether a good is considered normal or inferior,what would one consider
A)the good's income elasticity of demand
B)the good's price elasticity of demand
C)the good's price elasticity of supply
D)the good's cross-price elasticity of demand

Question

Quizplus · Accepted Answer

To determine whether a good is considered normal or inferior, we need to look at the good's income elasticity of demand. Normal goods have positive income elasticity of demand, meaning that as income increases, demand for the good also increases. In contrast, inferior goods have negative income elasticity of demand, meaning that as income increases, demand for the good decreases. Price elasticity of demand, price elasticity of supply, and cross-price elasticity of demand do not necessarily indicate whether a good is normal or inferior.

To Determine Whether a Good Is Considered Normal or Inferior,what