Which of the Following Statements Is TRUE

Multiple Choice

Which of the following statements is TRUE?

A) When the income elasticity of demand is positive, the good is inferior.
B) When the income elasticity of demand is negative, the good is normal.
C) Income elasticity of demand measures how much the quantity demanded of a good is affected by changes in consumers' incomes.
D) Income elasticity of demand measures the effect of the change in one good's price on the quantity demanded of the other good.