The demand for a normal good is downward sloping and the income elasticity is negative.

Name: The demand for a normal good is downward sloping and the income elasticity is negative.
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Question

Quizplus · Accepted Answer

A normal good has a positive income elasticity of demand, indicating that as income increases, the quantity demanded of the good also increases. Therefore, the demand curve for a normal good is upward sloping, not downward sloping.

The Demand for a Normal Good Is Downward Sloping and the Income