If a good has an income elasticity of 1.83, which of the following can be said about it?
What statement accurately describes the good based on its income elasticity of 1.83?
1) The good is a normal good, and its demand is elastic with respect to changes in income.
2) The good is an inferior good, and its demand is elastic with respect to changes in income.
3) The good is a normal good, and its demand is inelastic with respect to changes in income.
4) The good is an inferior good, and its demand is inelastic with respect to changes in income.