If a consumer's purchases of a product increases as income increases, this good is classified as a(n):
A) superior good.
B) inferior good.
C) substitute good.
D) complementary good.
E) normal good.

Question

Quizplus · Accepted Answer

When a consumer's purchases of a product increase as income increases, it is classified as a normal good. This means that as a consumer's budget increases, they are able to buy more of the good, as they have more money to spend.

If a Consumer's Purchases of a Product Increases as Income