If a 10 Percent Increase in Income Results in an 8

Multiple Choice

If a 10 percent increase in income results in an 8 percent increase in the quantity demanded of a good, the income elasticity of demand equals ________ and the good is ________ good.

A) 0.80; an inferior
B) 1.2; a normal
C) 0.80; a normal
D) -1.2; an inferior