Multiple choice

When income elasticity is greater than zero or positive, then increase in income leads to increase in quantity demanded. This happens in case of goods called

  1. inferior goods

  2. luxury goods

  3. normal goods

  4. necessity goods

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When income elasticity is greater than zero, then increase in income leads to increase in quantity demanded. This happens in case of the normal goods.