If an increase in earning leads to more of of a commodity being demanded, the good is said to have

If an increase in earnings leads to more of a commodity being demanded, the good is said to have positive income elasticity. Income elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in income. When the income elasticity of demand for a good is positive, it means that as consumers' income increases, they demand more of the good. This indicates that the good is a normal good, meaning that it is a good for which demand increases as income increases. On the other hand, when the income elasticity of demand for a good is negative, it means that as consumers' income increases, they demand less of the good. This indicates that the good is an inferior good, meaning that it is a good for which demand decreases as income increases. Therefore, if an increase in earnings leads to more of a commodity being demanded, it indicates that the commodity is a normal good and has positive income elasticity.