Suppose That the Income Elasticity of Demand for Peanut Butter

Multiple Choice

Suppose that the income elasticity of demand for peanut butter is 0.75. Which of the following is true?

A) Peanut butter is a normal good, because income elasticity is positive.
B) Peanut butter is an inferior good, because income elasticity is positive.
C) Peanut butter is a normal good, because income elasticity is less than 1.
D) Peanut butter is an inferior good, because income elasticity is less than 1.