Assume that a 4 percent increase in income across the economy produces an 8 percent increase in the quantity demanded of good X.The coefficient of income elasticity of demand is:

A) negative and therefore X is an inferior good.
B) negative and therefore X is a normal good.
C) positive and therefore X is an inferior good.
D) positive and therefore X is a normal good.

Income Elasticity

A measure of how the demand for a good or service changes in response to a change in consumers' income.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period of time.

Normal Good

A good or service whose consumption increases when income increases and falls when income decreases, price remaining constant.