If the quantity of higher education demanded rises by 5 percent when incomes rise by 10 percent,
A)higher education is a normal good
B)higher education is an inferior good
C)the demand for higher education is price elastic
D)the law of demand applies to higher education
E)the demand for higher education is price inelastic

Question

Quizplus · Accepted Answer

The fact that the quantity of higher education demanded increases with an increase in income indicates that higher education is a normal good. Normal goods have a positive income elasticity of demand, which means that as incomes increase, the demand for such goods also increases.

If the Quantity of Higher Education Demanded Rises by 5