If the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction, then this good will have an income elasticity _____1, and it is a(n) _____ good.
A) greater than; normal
B) less than; normal
C) equal to; normal
D) less than; inferior

Question

Quizplus · Accepted Answer

The correct answer is A because if the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction, then this good will have an income elasticity greater than 1, and it is a normal good.

If the Percentage Change in the Quantity Demanded of a Good