The correct answer is: A. Positive
Price elasticity of demand is a measure of how responsive consumers are to changes in the price of a good. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
For normal goods, the price elasticity of demand is positive. This means that when the price of a normal good decreases, consumers will buy more of it, and when the price of a normal good increases, consumers will buy less of it.
The price elasticity of demand for normal goods is not always the same. It can vary depending on a number of factors, such as the availability of substitutes, the importance of the good in the consumer’s budget, and the time horizon.
In general, the price elasticity of demand is higher for goods that have more substitutes, are more important in the consumer’s budget, and are purchased over a shorter time horizon.
Here is a brief explanation of each option:
- Option A: Positive. This is the correct answer. As explained above, the price elasticity of demand for normal goods is positive.
- Option B: Negative. This is not the correct answer. The price elasticity of demand for normal goods is positive, not negative.
- Option C: Constant. This is not the correct answer. The price elasticity of demand for normal goods can vary depending on a number of factors.
- Option D: Greater than 1. This is not the correct answer. The price elasticity of demand for normal goods can be greater than 1, but it does not have to be.