All normal goods have
A)an income elasticity of demand greater than 1.0.
B)a price elasticity of demand greater than 1.0.
C)a negative price elasticity of demand.
D)a positive income elasticity of demand.
E)a negative cross elasticity of demand.

Question

Quizplus · Accepted Answer

Normal goods have a positive income elasticity of demand, meaning that as income increases, the demand for the good also increases. None of the other options accurately describe normal goods.

All Normal Goods Have