A. negative
B. positive
C. zero
D. fixed
Correct Answer:
Option B – positive
Explanation
A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.
A. negative
B. positive
C. zero
D. fixed
Correct Answer:
Option B – positive
Explanation
A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.
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