The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Goods whose income elasticity of demand is greater than zero are _____.
A)inferior goods
B)normal goods
C)substitute goods
D)superior goods
E)public goods

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-Goods whose income elasticity of demand is greater than zero are _____.
A)inferior goods 
B)normal goods 
C)substitute goods 
D)superior goods 
E)public goods

Quizplus · Accepted Answer

Goods whose income elasticity of demand is greater than zero are normal goods, meaning that as income increases, the demand for these goods increases as well. Inferior goods have a negative income elasticity of demand, meaning that as income increases, the demand for these goods decreases. Substitute goods are goods that can be used in place of each other, and superior goods are those that have a greater demand than other goods in their category. Public goods are those that are non-excludable and non-rivalrous, meaning that access to them cannot be limited and one person's use does not diminish the availability for others.

The Figure Given Below Shows the Demand Curves for Five