A. An income elasticity of demand equal to one indicates that a good is income neutral. B. An income elasticity of demand equal to zero indicates that a good is income neutral. C.... A. An income elasticity of demand equal to one indicates that a good is income neutral. B. An income elasticity of demand equal to zero indicates that a good is income neutral. C. For a good to be considered normal, the income elasticity of demand must be greater than one. D. An income elasticity of demand greater than zero indicates that a good is normal. E. Income elasticity of demand cannot be zero. F. An income elasticity of demand between zero and one indicates that a good is inferior. G. Income elasticity of demand cannot be negative.

The question presents several statements regarding income elasticity of demand and requires clarification on the accuracy of these statements.

D. An income elasticity of demand greater than zero indicates that a good is normal.

D. An income elasticity of demand greater than zero indicates that a good is normal.

An income elasticity of demand greater than zero classifies a good as normal, meaning as income increases, the demand for the good increases.

A common mistake is confusing normal goods with luxury goods, which have an income elasticity greater than one.

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