Chapter 48, Problem 3MCQ

To determine

The income elasticity of demand for normal good

Explanation of Solution

The income elasticity of demand for a normal good is positive which would less than zero because increase in income leads to more demand of goods at each price level.

Therefore, the correct option is d.

Economics Concept Introduction

Introduction:

Income elasticity of demand represents the measure of sensitivity of demand to income that shows how change in income affects the quantity demanded.