For a normal good, income elasticity of demand will be:
A) negative.
B) positive.
C) zero.
D) determined by the direction of the change in income.

Question

Quizplus · Accepted Answer

For a normal good, as income increases, the demand for the good will also increase. This positive relationship between income and demand means that the income elasticity of demand for normal goods is always positive.

For a Normal Good, Income Elasticity of Demand Will Be