Asked by
Mayela Abigail
on Nov 25, 2024
Verified
A normal good would have a positive price-elasticity of demand.
Normal Good
A type of good whose demand increases when consumer income rises, and falls when consumer income decreases.
Price-elasticity of Demand
A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity typically differing among products.
- Differentiate between normal goods and inferior goods based on income elasticity and price elasticity of demand.
Verified Answer
JP
Learning Objectives
- Differentiate between normal goods and inferior goods based on income elasticity and price elasticity of demand.