Imagine your income increases and you find that you buy more coffee. What is true about your income elasticity of demand (Ei) and how you perceive coffee?     Ei > 0 and you view coffee as an inferior good     Ei > 0 and you view coffee as a normal good     Ei < 0 and you view coffee as an inferior good     Ei < 0 and you view coffee as a normal good

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
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Chapter5: Elasticity Of Demand And Supply
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Imagine your income increases and you find that you buy more coffee. What is true about your income elasticity of demand (Ei) and how you perceive coffee?

   

Ei > 0 and you view coffee as an inferior good

   

Ei > 0 and you view coffee as a normal good

   

Ei < 0 and you view coffee as an inferior good

   

Ei < 0 and you view coffee as a normal good 

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