If an increase in income results in an increase in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.
A) a normal good; positive
B) a normal good, negative
C) an inferior good; positive
D) an inferior good; negative

Question

Quizplus · Accepted Answer

When income increases and the demand for a product increases, the product is considered a normal good, and the income elasticity of demand is positive, indicating a direct relationship between income and demand.

If an Increase in Income Results in an Increase in the Quantity