Answer:
d. positive and therefore X is a normal good.
Explanation:
As we know that
And, the income elasticity of demand would equal to
= (Percentage Change in quantity demanded) ÷ (Percentage Change in income)
= (3%) ÷ (6%)
= 0.5
As we see that the income elasticity of demand is positive and 0.5 that represents the goods are normal goods as it depicts a positive relationship between the income and quantity demanded plus the elasticity also comes in positive.
