Assume That a 6 Percent Increase in Income in the Economy

Multiple Choice

Assume that a 6 percent increase in income in the economy produces a 3 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is

A) negative, and therefore X is an inferior good.
B) positive but less than one; therefore X is an inferior good.
C) positive, and therefore X is an inferior good.
D) positive, and therefore X is a normal good.