1919EconomicsMedium
Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct?
AIncome elasticity is -2
BDemand is price inelastic
CThe product is normal
DThe good is inferior
Correct answer
C. The product is normal
Explanation
The correct answer is The product is normal.