The number of CDs purchased increased by 50 percent when consumer income increased by 10 percent. Assuming other factors are held constant, CDs would be classified as:
A) social goods.
B) normal goods.
C) Giffen goods.
D) inferior goods.

Question

Quizplus · Accepted Answer

CDs are classified as normal goods because as consumer income increases, the demand for CDs also increases. The increase in income creates a higher demand for music and entertainment, leading to more CD purchases.

The Number of CDs Purchased Increased by 50 Percent When