If a good is normal the income elasticity of demand must be
A)Positive and greater than 1
B)Merely positive (not necessarily greater than 1)
C)Zero
D)Negative

Question

Quizplus · Accepted Answer

For a good to be considered normal, the income elasticity of demand must be positive, indicating that demand for the good increases as income increases. It does not necessarily have to be greater than 1; that would classify it as a luxury good.

If a Good Is Normal the Income Elasticity of Demand