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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Positive income elasticity simply means that as income rises, quantity demanded also rises, as is characteristic of most consumption goods.
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4.3. Income Elasticity of Demand: Normal and Inferior Goods
ne percent, the quantity demanded at each price would rise by 0.8 percent. Although own-price elasticity of demand will almost always be negative because of the law of demand, income elasticity can be negative, positive, or zero. <span>Positive income elasticity simply means that as income rises, quantity demanded also rises, as is characteristic of most consumption goods. We define a good with positive income elasticity as a normal good . It is perhaps unfortunate that economists often take perfectly good English words and give them different definition


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