Determine whether the good is normal or inferior

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Question: 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.

Reference no: EM132175385

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