Healy Ltd is a paper merchant. The company sells standard A4 paper to a wide variety of stationers, other retailers and office equipment suppliers. In 2014, incomes rose by two per cent, as a result demand for paper rose from 2,000,000 reams to 2,030,000 reams. Calculate the income elasticity of demand for paper in this case and  explain whether (i) demand for paper in this case is income elastic or income inelastic and (ii) whether paper is a normal good or an inferior good.

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