As the income increases from $40,000 to $60,000,the quantity demanded for a product increases from 27 to 29.Then:
A) The demand for this normal good is income inelastic
B) The demand for this normal good is income elastic
C) The demand for this normal good is price elastic
D) The demand for this normal good is price inelastic
E) The supply of this inferior good is inelastic

Question

Quizplus · Accepted Answer

The demand for this normal good is income inelastic because the percentage change in quantity demanded is smaller than the percentage change in income.

As the Income Increases from $40,000 to $60,000,the Quantity Demanded