Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 15

In each of the following instances, determine whether the good is normal or inferior, and whether it is income-elastic or income-inelastic.
a. If income increases by 10 percent and the quantity demanded of a good increases by 5 percent, the good is ______ and ______.
b. If income increases by 10 percent and the quantity demanded of a good decreases by 20 percent, the good is _______ and _____.