Most goods can be classified as normal goods rather than inferior goods. The definition of a normal good suggests that
A)the income elasticity of demand for the good is negative.
B)the price elasticity of demand for the good is negative.
C)the income elasticity for the good is greater than 0.
D)the cross elasticity of demand for the good is positive.

Question

Quizplus · Accepted Answer

Normal goods have a positive income elasticity of demand, meaning that as income increases, demand for these goods also increases. This contrasts with inferior goods, where demand decreases as income increases.

Most Goods Can Be Classified as Normal Goods Rather Than