Normal goods have

1.	Normal goods have
Answer» Positive income elasticity Normal goods have Positive income elasticity. A positive income elasticity of DEMAND is associated with normal goods; an increase in income will LEAD to a rise in demand. If income elasticity of demand of a commodity is less than 1, it is a NECESSITY good. If the elasticity of demand is GREATER than 1, it is a luxury good or a superior good.

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Positive income elasticity

Normal goods have Positive income elasticity. A positive income elasticity of DEMAND is associated with normal goods; an increase in income will LEAD to a rise in demand. If income elasticity of demand of a commodity is less than 1, it is a NECESSITY good. If the elasticity of demand is GREATER than 1, it is a luxury good or a superior good.

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Normal goods have

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