The correct answer is A. Positive income elasticity.
Normal goods are goods whose demand increases when income increases. This is because people tend to buy more of these goods when they have more money to spend. For example, if you get a raise at work, you might decide to buy a new car or take a vacation.
Negative income elasticity means that demand for a good decreases when income increases. This is because people tend to buy less of these goods when they have more money to spend. For example, if you get a raise at work, you might decide to save more money or invest in stocks.
Fluctuating income elasticity means that demand for a good can increase or decrease depending on income. This is because people’s preferences for these goods can change depending on their income. For example, if you are a student, you might buy more ramen noodles when you are on a tight budget. However, if you get a job after graduation, you might start buying more expensive meals.
Zero income elasticity means that demand for a good does not change when income changes. This is because people’s preferences for these goods are not affected by their income. For example, you might always buy the same brand of toothpaste, regardless of your income.
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