When incomes are rising, new SUV sales increase while used SUV sales decrease. This indicates that
A)used SUVs and new SUVs are both normal goods.
B)used SUVs are inferior goods and new SUVs are normal goods.
C)used SUVs and new SUVs are complements.
D)used SUVs and new SUVs are substitutes.
E)used SUVs are normal goods and new SUVs are inferior goods.

Question

Quizplus · Accepted Answer

When incomes rise and consumers buy more new SUVs but fewer used SUVs, it suggests that new SUVs are normal goods (demand increases with income) and used SUVs are inferior goods (demand decreases with income).

When Incomes Are Rising, New SUV Sales Increase While Used