Economists define normal goods as having a positive income elasticity. We can divide normal goods into two

Question:

Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?

Fantastic news! We've Found the answer you've been seeking!