7. Using the income elasticity of demand to characterize goods Data collected from the economy of Albing reveals that an 18% increase in income leads to the following changes: • A 29% increase in the quantity of sniks demanded • A 17% decrease in the quantity of blats demanded • A 14% increase in the quantity of trogs demanded 4 Compute the income elasticity of demand for each of the goods described, and select the appropriate value in the following table. Then indicate whether the income elasticity for each good indicates that it is a normal good or an inferior good. Hint: Be careful to keep track of the direction of change. The sign of the income elasticity of demand can be positive or negative, and the sign confers important information. Good Income Elasticity of Demand Normal or Inferior Good Sniks Blats Trogs Which of the following three goods is most likely to be classified as a luxury good? Sniks Trogs Blats