Danita rescues dogs from her local animal shelter.When Danita's income rises by 7 percent,her quantity demanded of dog biscuits increases by 12 percent.For Danita,the income elasticity of demand for dog biscuits is
A)negative,and dog biscuits are a normal good.
B)negative,and dog biscuits are an inferior good.
C)positive,and dog biscuits are an inferior good.
D)positive,and dog biscuits are a normal good.

Question

Quizplus · Accepted Answer

A positive income elasticity of demand means that as income rises, the quantity demanded of the good also increases, indicating that dog biscuits are a normal good for Danita.

Danita Rescues Dogs from Her Local Animal Shelter