Economists distinguish between normal and inferior goods using
A)price elasticity of demand
B)price elasticity of supply
C)income elasticity of demand
D)cross-price elasticity of demand
E)tax incidence

Question

Quizplus · Accepted Answer

Normal goods have positive income elasticity of demand, while inferior goods have negative income elasticity of demand. Therefore, to distinguish between normal and inferior goods, economists use income elasticity of demand.

Economists Distinguish Between Normal and Inferior Goods Using