Assume That a 4 Percent Increase in Income Results in a 2

Multiple Choice

Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is

A) negative, and the good is an inferior good.
B) negative, and the good is a normal good.
C) positive, and the good is a normal good.
D) positive, and the good is an inferior good.