Question

The quantity demanded of good A rises as income rises. It follows that income elasticity of demand is __________than 0, and good A is a(n) __________ good.

Answer 1

The correct answer that fills the gap are: Greater, normal.

Step-by-step explanation:

Given an increase in the income of consumers, they usually increase their amount consumed, and vice versa. The income elasticity of demand measures the proportion of the increase in the consumption of a product before a proportional change in income.

elasticity Demand revenue = Proportional variation in the amount consumed of a product / Proportional variation in consumer income