(Answered) If a decrease in income leads to an increase in the demand for macaroni, then macaroni isGroup of…

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➤ How do economists distinguish inferior goods from normal goods using income elasticity?
They calculate income elasticity of demand: percentage change in quantity divided by percentage change in income. A negative elasticity signals an inferior good. A positive elasticity indicates a normal good. Empirical estimates from household data or surveys confirm whether a product is inferior or normal.